Catalyst Capital has acquired a portfolio of properties in the UK for €17m (£13.15m) from TH Real Estate, for its new European real estate fund, Catalyst European Property Fund II (CEPF II). The net initial yield is 8% and the reversionary yield is 12%.
The portfolio of four properties comprise Units 2620-2650 at Birmingham Business Park, which are 55% leased to a number of tenants; Building 1300 at Bristol Parkway North, which is 100% leased; a vacant industrial unit on Eismann Way, Corby; and an industrial unit on Stephenson Way, Newark, which is 100% leased.
Guy Wilson, a partner of Catalyst Capital, said: “We are pleased to have secured this portfolio of four properties for our new European fund, which continues our current strategy in the UK of purchasing regional portfolios. The properties provide an opportunity for value enhancement through refurbishment and reletting”.
Catalyst announced in June the first close of CEPF II, a real estate fund targeting €1.25bn of investments, having raised equity commitments of €150m from global institutional investors.
Catalyst has already deployed for CEPF II €125m of equity in five separate transactions in the UK and Europe. In the UK, CEPF II has purchased the Regatta and Eva portfolios, which total 34 properties, for a combined price of £93m. In France, CEPF II in January this year acquired three high-quality office buildings in established business districts of Paris Ile de France for a total of €155m.
