The Bishopsgate Long Term Property Unit Trust Fund, advised by Cordea Savills, has successfully completed its second and third acquisitions, comprising a Tesco food store in the Cotswold town of Stroud and a hotel/office complex in Cardiff.
The food store was purchased for £29.22 million (approx. €34.5 million) at a 4.9% net initial yield. The acquisition was structured as a sale and leaseback to Tesco and is the third such acquisition between clients of Cordea Savills and Tesco over the last three years.
The other asset, Helmont House in Churchill Way, Cardiff, was purchased for £23.15 million (approx. €27.3 million) at a net initial yield of 8.00%. It comprises a Premier Inn Hotel and a refurbished multi-let office that is fully let to professional firms.
Both purchases are in line with the Fund’s strategy of having a strong focus on secure income, quality covenants and investing in assets with the prospect for capital growth in the medium term.
Patrick Lowther, Portfolio Manager, commented, "The food store offers the Bishopsgate Fund an attractive 20-year lease with annual RPI uplifts. The Cardiff property offers a long dated inflation-linked lease to the hotel, combined with the asset management opportunity embodied in the higher yielding offices. Both assets complement the Fund’s recent purchase of a multi-let office building at 101 St Martins Lane in London."
Since launch in November 2012 the Fund has invested £85 million (with a further £28 mln under offer) but still has capacity to deploy up to £200 million in 2013. The Fund has a multi-sector approach, favouring well located assets of over £10 million and which yield over 6.5% NIY.
Source: Citigate Dewe Rogerson