Rockspring announced that it has sold Oriel House, The Quadrant, Richmond, on behalf of the Rockspring UK Value Fund (‘RUKV’) to an institutional client of Aviva Investors for £9 million (approx. €10.7 million), which reflects a net initial yield of 6.85%.
Oriel House, which offers 24,000 ft² (approx. 2,230 m²) of office and retail space, is one of five buildings that made up the 252,000 ft² (approx. 23,411 m²) St Martin’s South East office portfolio, acquired by RUKV in February 2011 for £47.78 million (approx. €56.7 million). This disposal follows shortly after the £31 million (approx. €36.8 million) sale of the 90,000 ft² (approx. 8,361 m²) Kings and Conquest House, the largest building within the portfolio, in May 2013.
RUKV was launched in 2009 to take tactical advantage of the significant re-pricing in the UK property market. The closed-ended fund has built a portfolio of retail, office and student accommodation in diverse locations throughout the UK and following this disposal, will have assets valued in excess of £420 million (approx. €498.5 million).
Richard Bains, Rockspring UK Value Fund Manager said:
““This sale demonstrates the depth of demand for well located, good quality assets in the Greater London office market, and is in line with RUKV’s strategy of executing opportunistic sales in order to continue to outperform our investor return targets.”
Anna Rule, Aviva Investors said:
“We are pleased to have secured a high quality asset that meets the requirements of our client.”
Rockspring was advised by Montagu Evans and Aviva Investors was represented by Lewis Ellis.