Orchard Street Investment Management, the specialist commercial property investment manager, has completed on the acquisition of Richmond Riverside, West London on behalf of St James’s Place, from a fund advised by J.P. Morgan Asset Management, for £64.5 million (approx. € 77.6 million). The sale price reflects a net initial yield of 4.9% rising to 6.25% once fully let and post settlement of two outstanding rent reviews.
Located on the banks of the River Thames at the corner of Richmond Bridge, picturesque Richmond Riverside is a premier mixed use development that forms part of Richmond’s historic town center. Providing 132,965 ft² (approx. 12,353 m²) of commercial space in total, the asset comprises six self-contained office blocks, eight high street retail units, three bars/restaurants, 28 long leasehold flats, a boathouse and 122 town center car parking spaces.
The largest element of the office accommodation is let to ebay (UK), including PayPal and Gumtree for its UK headquarters. Other office tenants include Serco and The Vitec Group. Occupiers within the retail and leisure element include Pitcher and Piano, Phase Eight and Whistles.
The property has an average unexpired lease term of 4.25 years, its mixed use nature providing multiple asset management opportunities to increase rental tone and income in an improving occupational market. Opportunities include completing a Grade A refurbishment and subsequent letting of Hill House (15,841 ft²), settling outstanding rent reviews, regearing leases and enhancing the retail and leisure experience.
Source: Orchard Street