Friday, 27 February 2015
Centurion acquires leading Midlands Business Park (UK)
Centurion Properties, the UK real estate company, has acquired Bretby Business Park, one of the leading business parks in the Midlands.
Set in 33-acres, Bretby Business Park is located between Burton-upon-Trent and Ashby de la Zouch and comprises 320,000 ft² (29,728 m²) of office, laboratory, industrial and warehouse space. It is home to more than 60 businesses, employing around 2,000 people.
Through a new wholly-owned vehicle, Centurion has acquired the park from a joint venture between TIAA Henderson Real Estate and Centurion. The price was in excess of £25 million (€27.4 mln). Advised by JLL, Centurion part financed the acquisition with a senior debt facility from AgFe and a mezzanine facility from ICG-Longbow. The price reflects a net initial yield of more than 8.0%.
Julian Rooth, founder and CEO of Centurion, said: “Our partnership with TH Real Estate has been a great success. The acquisition of Bretby marks a significant step in Centurion’s evolution. It will provide strong, sustainable cashflow, which will underpin Centurion’s growth. We are also confident that there are further opportunities to enhance the rental income over the next few years”.
Savills and GBR Phoenix Beard advised the two parties in the transaction.
Centurion’s acquisition of Bretby Business Park follows the company’s appointment earlier this month of Richard Cotton as Chairman to help drive its ambitious growth plans.
Partnership (now Aberdeen Asset Management) and TH Real Estate, generating an ungeared net internal rate of return to investors over the 15-year period of more than 14%.