Newcore Capital Management, the alternative real estate investment manager, has completed five UK property transactions for a total of €16.2m (£14.5m) as part of the repositioning of its clients’ portfolios.
The transactions comprise two acquisitions in Bristol and Bath and three sales in Newcastle-under-Lyme, Hertford and Bishop’s Stortford.
The acquisitions are:
- New Bond House in Bristol, a 21,955 ft², multi-let office building opposite Cabot Circus shopping centre, for c. €4.3m (£3.8m), which reflects a net initial yield of 5.4% and a capital value of €207.3/ft² (£185/ft²). The building, which is fully let on seven leases at an average rent of €11.2/ft² (£10/ft²), has the potential for alternative uses, such as residential or student housing in the medium term.
- 11, 12 & 11a Westgate Street in Bath, a 5,500 ft² student accommodation building with retail on the ground and basement floors, for €1.7m (£1.5m), which reflects a net initial yield of 6.0%.
The sales are:
- Parkhouse Interchange in Newcastle Under Lyme, a 71,880 ft² distribution and trade counter warehouse, to LSH Investment Management for c. €5.9m (£5.3m), which reflects a net initial yield of 5.0% on rent passing. Newcore extensively refurbished the property in 2013 after agreeing to lease it to Saint-Gobain Building Distribution on a lease with 15 years term certain.
- The Rotunda in Hertford, an 8,305 ft² office building near Hertford East train station, to a private investor for €2.9m (£2.6m), which reflects a net initial yield of 5.1%. Newcore executed a leasing strategy, which fully let the building on four tenancies, allowing for full vacant possession to be secured for redevelopment in September 2021.
- 45/47 South Street in Bishop’s Stortford, comprising three shops, let to Co-op Funeralcare, Halfords and Sue Ryder, and three floors of residential accommodation, let to Stort Valley Housing Association, to a private investor for €1.4m (£1.25m), which reflects a net initial yield of 7.5%. Newcore executed a leasing strategy to increase the length of the leases.
