As part of a continuing rationalisation programme which has seen properties to the value of approximately £110 million sold in the last seven weeks, Greenridge Investment Management is bringing a portfolio of five commercial real estate assets to market by, with a total value of £30 million.
The portfolio includes four large office blocks and one retail unit, all of which have existing long term tenancies in place – ranging from eight to 49 unexpired, offer net yields of over 5.75% and are located throughout the UK. Two of the office blocks are leased to The Secretary of State for the Environment, with the other two blocks leased to a local council and a subsidiary of Samsung C&T. The city centre retail unit is let to the Arcadia Group.
Greenridge director, Bik Bhuptani, says: “Long let commercial real estate in the UKs regions is attracting a lot of interest from investors around the world. As a business we have over £700m worth of assets under management and are always looking at how to maximise portfolio returns for us and our co-investors. As well as profit taking on some disposals, we are also actively searching for new acquisitions with which we can reinvest the funds freed up from these sales, along with additional resources.”
The five properties are:
Princes Court, Leicester – 22,301 sq.ft of office accommodation across 11 interlinking three storey units. Currently leased to the Secretary of State for the Environment and occupied by the Crown Prosecution Service on a passing rent of £290,000 per annum. Greenridge is expecting offers in excess of £4.15m, reflecting a net yield of 6.56%
Twyver House, Gloucester – a detached five storey city centre office block covering 75,654 sq.ft of five floors. The property is let in its entirety to the Secretary of State for the Environment, with almost 50 years WAULT and over ten years to the next break clause. The property is being marketed for offers in excess of £11.485m, which reflects a net initial yield of 5.75%.
Hackworth House, Darlington – 38,385 sq.ft of Grade A office space on the Morton Palms Business Park that is let to Whessoe Engineering Limited, with a guarantee from Samsung C&T Corporation, on a term of 12 years without break from October 2015. It is on the market for offers in excess of £5.83m, representing a net initial yield of 7%.
Linthorpe Road, Middlesborough – 4,065 sq.ft corner retail unit over four floors on a busy city centre high street. The entire property is occupied by Miss Selfridge guaranteed by Arcadia Group, with over 22 unexpired lease term and five-yearly upward only rent reviews. Current passing rent is £174,000 per annum and the property has an asking price of £3.26m.
Spectrum 8, Seaham – a detached Grade A office building on Spectrum Business Park built in 2008. The 30,010 sq.ft property is let to Durham County Council on a full repairing and insuring lease to 2030, without break, on an annual rent of £358,620. The asset is on the market for £5.2m, reflecting a net initial yield of 6.5%
Greenridge Investment Management is being advised by GVA on all but the Gloucester sale for which JLL are advising.
