Rockspring Property Investment Managers (“Rockspring”), announced the third close of UK Value 2 LP (“UK Value 2” or the “Fund”), bringing total equity commitments to £150 million (approx. €188 mln). In addition, the Fund announced that it has acquired Bramley Shopping Center in Leeds and Guildhall, an office and retail investment in Glasgow, for a total consideration of £47.5 million (approx. €59 mln).
These transactions follow the acquisition of Maskew Retail Park, Peterborough in July and brings the total number of assets in the Fund to three, with an aggregate value of £84.5 million (approx. €106 mln).
Bramley Shopping Centre in Leeds is a well-located, neighbourhood shopping center to the north west of the city. The asset was acquired by the Fund from NewRiver Retail for £18.5 million (approx. €23 mln), reflecting a net initial yield of 7.3% per annum. The property comprises 121,342 ft² (11.241 m²) of retail, supermarket and office space, accommodating a range of tenants including Tesco, Boots, and Poundstretcher.
Guildhall, a multi-let city center office and retail investment in Glasgow was purchased for £29 million from Redevco, reflecting a net initial yield of 8.0% per annum. The asset is located alongside Glasgow’s core retail shopping district and encompasses 145,392 ft² (13.470 m²) of office and retail accommodation arranged over eight floors.
Richard Bains, Rockspring Partner and Fund Manager of the UK Value series, commented: “The conclusion of the Bramley and Guildhall transactions means that, together with the Maskew Retail Park acquisition, we have now closed a deal a month since the launch of UK Value 2, demonstrating a similar level of investment efficiency to that set by the original Rockspring UK Value Fund, where sales to date have generated IRRs in excess of 20% per annum. All three properties reflect the central ethos of the Fund, which is good quality real estate with deliverable upside potential.”