Brunswick Real Estate UK has acquired a portfolio of 13 prime London holdings from a family estate. The company will invest a total of €170m (£150m) in the portfolio, including the cost of acquisition, in a five-year asset management programme.
The portfolio, which has been held in the same ownership since the 1930s, includes three significant estates: Quadrant Business Centre and Lonsdale Road, a designated design hub, in Queens Park, north London, and Quadrant Courtyard in Weybridge, a popular mixed-use property with redevelopment potential.
The portfolio also comprises more than 100 residential units, including two purpose-built private rented sector (PRS) blocks in Twickenham and Surbiton, which mark Brunswick’s entry into the PRS sector in the UK.
The transaction was funded by Brunswick Invest, the principal investment arm of Brunswick Real Estate, in partnership with an international institutional investor. Debt finance was provided by Investec Structured Property Finance.
Brunswick has formulated a five-year asset management plan, focused on the Queens Park assets, which make up the majority of the portfolio by value, designed to add value through residential conversions, repositioning of assets and re-gearing leases.
Queens Park benefits from strong overground and underground connectivity to the West End, Central London and Canary Wharf and has experienced the highest property price growth in the UK since 1995.
David Turner, Founding Partner, Brunswick Real Estate UK, said: “Portfolios of this nature are exceptionally rare and its acquisition reflects our ability to source interesting opportunities for our investor base. The portfolio has been well managed but there is a range of opportunities to enhance its value and appeal through proactive asset management, working closely with our tenant partners and local stakeholders.”
Will Amies, Founding Partner, Brunswick Real Estate UK, said: “This is exactly the type of large and unique special-situation investment we are interested in making, alongside our thematic strategy, particularly in the private rented sector. We were able to complete this complex, off-market acquisition in just six weeks. We have access to significant firepower through Brunswick and its international partners and are looking to make further acquisitions this year.”
Joshua Weinstein, at Investec, commented: “This is a very granular, well-located portfolio with a strong income profile and represents a welcome opportunity to work with a team of highly experienced property professionals, supporting their ambitious asset management programme, as well the start of what will hopefully be a long-lasting relationship with Brunswick in the UK.”
CBRE advised the vendor.
