Rockspring Property Investment Managers LLP announces that, on behalf of the Rockspring UK Value Fund, it has acquired a portfolio of five office buildings from St Martins for a total consideration of £47.78 million (approx. 56 million), reflecting a blended net initial yield of 8.81%.
The five assets, spread across the South East of England, comprise over 252,000 ft² (approx. 23,000 m²) of office accommodation and currently produce a net rental income of £4.79 million per annum. The assets are:
- Gateway, The Quadrant, Richmond 62,000 ft² of office space, fully let to two tenants, Reed Exhibitions and Clydesdale Bank and a parade of seven retail units.
- Oriel House, The Quadrant, Richmond - 24,000 ft² of office space fully let to The Listening Company Limited with two retail units let to RBS and Barnard Marcus.
- Kings House & Conquest House, Wood Street, Fife Road, Kingston-Upon-Thames 102,000 ft², comprising two office buildings, with ancillary ground floor retail units.
- Hays House Guilford a 18,000-ft² office building let to three tenants with 9,000 ft² vacant accommodation.
- Overline House, Crawley a 47,000-ft² office building, which has significant redevelopment potential.
The portfolio was acquired on behalf of Rockspring's UK Value Fund, which has acquired a total of ca. £400 million of assets in the UK in the past 12 months.
Commenting on the transactions, Richard Bains, Rockspring UK Value Fund Manager said: "The properties benefit from strong, strategic locations, with many opportunities for income enhancement through asset management strategies, including potential major redevelopment of parts of the portfolio. There are a number of ways in which we believe we can create value from the portfolio, and therefore deliver strong returns for our investors."
Rockspring were advised by Montagu Evans and Savills acted for St Martins.