A new joint venture set up by Stainton, together with a group of Middle Eastern investors advised by WW Advisors, has acquired Chapel Quarter Nottingham from Royal London Asset Management's Scottish Life Fund for £20 million (approx. 24 million), representing a yield of 8.75%.
The property is 91% let to nine tenants including Thomson Reuters, Barclays and Global Radio with an average lease length remaining of 14 years.
The transaction offers a very good return with numerous active asset management opportunities to further enhance the value.
James Longden, Chief Investment Officer, Stainton Group commented: "We spent many months working with the vendor Royal London Asset Management to ensure the successful completion. We are very pleased to have made this investment in the Nottingham market and we strongly believe in the fundamentals that Nottingham has to offer as a location.
"We look forward to working with the local, national and international tenants in improving and consolidating Chapel Quarter's position and image in the center of Nottingham."
David Swan, Managing Director, WW Advisors commented: "We are delighted to add Chapel Quarter to the rapidly growing list of properties we have advised as we build our client's portfolio.
"Our strategy has seen the recent acquisition of three quality assets, each of which will deliver a good return, require low capital expenditure, and with active asset management, we believe will perform very well.
"We continue to seek more opportunities, both on and off market, where we can secure assets that fit our model and work with local partners to add value for our client."
Stainton, having tracked the deal for some months, also negotiated the debt. As well as being an equity partner, Stainton has also been appointed Asset Manager to the new joint venture. They will also oversee the planned upgrading of the reception area, common parts and exterior of the building, to improve the overall image of the building and better reflect the quality of the existing tenants.
Stainton and WW Advisors were delighted to work with RLAM and Allsops to achieve a successful conclusion. Debt finance was provided by Deutsche Postbank AG.
The joint venture was advised by Pardoe Properties and CBRE. RLAM were advised by Allsops.