Friday, 27 June 2014
RBS brings £90mln Silverbird portfolio to market (UK)
RBS Real Estate Asset Management (“RBS”) is bringing a portfolio of 26 UK regional commercial property assets to the market seeking offers over £87.65 million (approx. €110 million), representing a net initial yield of around 9.75%.RBS has appointed CBRE to market the 939,000 ft² “Silverbird” real estate portfolio, which includes a number of dominant office buildings in regional cities, as well as six leisure and retail assets, three industrial assets and a leased hotel.
The portfolio is the second brought to market by RBS, following the successful sale of the Sapphire Portfolio in Q4 2013, and is in line with its strategy of seeking to maximize the value of property assets ahead of sale through asset management. RBS has packaged complementary, high-quality assets and has brought them to market at the optimum time to best attract potential purchasers and drive further returns.
Silverbird has a net annual income of over £8 million from around 117 separate tenants and a weighted average lease term of over 10 years. RBS has completed a comprehensive program of capital expenditure on assets within the portfolio and has refurbished much of the vacant space, which comprises around 11% of the portfolio, resulting in significant potential upside for the purchaser.
Key assets within the portfolio include:
Pacific House, Glasgow–RBS has recently undertaken a £2.25 million refurbishment on this six-story office building. Located within the central business district, Pacific House offers 52,750 ft² of flexible open-plan floor plates. Key tenants include Ernst & Young and CBRE.
No 1 and 2 Cathedral House, Newcastle–a 101,000 ft² office building in central Newcastle that RBS has refurbished and let to a number of key tenants including Trillium.
Wellington Street, Hull–a 37,000 ft² modern office building constructed in 2007 currently occupied by tenants including PWC, Barclays Banks and Baker Tilly.
Shiprow, Aberdeen–a modern multi-screen cinema let to Vue until 2026.
Source: FTI Consulting