Wainbridge Limited, the property investment, development and asset management firm, has completed the acquisition of three office assets, located in central London, Croydon and Bristol, for a total consideration of £39 million (approx. 44.7 million). The properties were acquired on behalf of its real estate fund, Wainbridge Global Opportunities London Limited.
Wainbridge has acquired three office buildings located on Chenies Street from a consortium of private investors for £24.5 million, representing a net initial yield of 6%. Providing 60,670 ft² (approx. 5,600 m²) of office accommodation, the properties are currently fully let to advertising and marketing group Omnicom, and its subsidiaries, until 2016.
Offering significant asset management opportunities, Wainbridge intends to maximize the value of the assets by undertaking a full refurbishment program, costing approximately £4.5 million, with the tenant in situ. Michael Elliott LLP acted for and advised Wainbridge. Santander Bank provided the senior debt for the acquisition and a capex facility for the refurbishment works.
Sunley House, Croydon
Sunley House comprises an 112,329 ft² (approx. 10,400 m²), 12-story, multi-let office building in Croydon. Wainbridge, in partnership with a private investor, has acquired the asset out of receivership for £11 million, reflecting a net initial yield of 10.7% and a low capital value of £98/ft².
Currently 67% let, tenants at the property include Zurich Insurance and the Secretary of State for Communities and Local Government. In 2008 the building underwent a full refurbishment program, which cost over £4 million, transforming the building into high spec office accommodation. Investec Bank provided the senior debt for the acquisition and a capex facility for the refurbishment works. Cushman & Wakefield acted on behalf of the vendor.
Also acquired out of receivership in partnership with a private investor, as part of the linked purchase with Sunley House, Froomsgate is a 91,859 ft² (approx. 8,500 m²) office building located in the heart of Bristol city center and adjacent to its commercial core. Secured for £3 million, the acquisition represents a net initial yield of 25% and a low capital value of £33/ft².
Currently 74% let, tenants at the property include Avon & Somerset Police Authority and the Crown Prosecution Service. Wainbridge believes that there is potential to create significant value at Froomsgate through active asset management. Investec Bank provided the senior debt for the acquisition. Cushman & Wakefield acted on behalf of the vendor.
These acquisitions are in line with the Fund's strategy to acquire 'value-add' office and mixed-use properties, predominantly concentrated in Greater London, with a degree of capex or leasing risk that offer an attractive investment opportunity. This latest tranche of investments on behalf of the Fund follows on from and complements its debut acquisition of Number 1 Croydon in November 2010. N