Orchard Street Investment Management (‘Orchard Street’) has completed the acquisition of The Alhambra Portfolio, a portfolio of seven prime commercial assets, for approx. €208.4 mln (£149.65 mln), reflecting a net initial yield of 5.5%. Orchard Street acquired the portfolio at property level on behalf of a pension fund client from a private investor.
Six of the seven assets are in the South East of England, while five are freehold. With a total of 74,835 m² (805,519 ft²), the portfolio comprises a Greater London Tesco distribution facility, five office buildings, and a Sainsbury’s convenience store and petrol filling station. All of the properties are single let to tenants with strong covenants on a weighted average unexpired lease term of 17.4 years.
The portfolio comprises the following assets:
- Beam Reach Business Park in Rainham, Essex: a 53,218 m² (572,837 ft²) distribution centre, occupied by Tesco
- Tamblin Way in Hatfield, Hertfordshire: 8,186 m² (88,114 ft²) of freehold office space, leased by Affinity Water Limited
- Kitemark Court in Milton Keynes, Buckinghamshire: a 5,335 m² (57,423 ft²) freehold office development, leased by The British Standards Institution
- 1500 Eureka Park in Ashford, Kent: 3,322 m² (35,759 ft²) of office space, let to Smiths Medical International
- Saxon House in Peterborough, Cambridgeshire: 2,745 m² (29,549 ft²) freehold offices, occupied by BGL Group
- One Curo Park in St Albans, Hertfordshire: 1,604 m² (17,273 ft²) freehold office development, rented to John Sisk & Son Ltd
- Sainsbury’s filling station & convenience store in Horley, Surrey: a freehold development on a 3,642 m² site
Gary Felce, Partner at Orchard Street, commented: “This portfolio acquisition presents a rare and exciting opportunity for Orchard Street to secure a diversified mix of prime commercial properties in highly sought-after areas of the UK’s South East and East Midlands. All assets benefit from excellent fundamentals and exceptional covenant strength, whilst presenting attractive prospects for future income growth.”
