FINANCIALS
| Purchase price: | £7.75m |
| Total costs: | £10.75m (including refurbishment costs) |
| End value: | £15m |
KEY ACHIEVEMENTS
- Acquired a secondary office investment in a prime location at a competitive price in a strong market. Net Initial Yield on Purchase was 9.25%.
- Negotiated a 10-year lease extension with the Tenant who required the building to be refurbished to remain in the building.
- New lease is agreed at a higher rent with fixed uplifts.
- Conversion of a secondary investment into a prime asset by re-gearing the lease, refurbishing the property and restructuring repairing obligations to create an institutional investment.
- The lease re-gear and refurbishment delivers a market value improvement of £4.25 million.
- The office and retail investment was sold to Tesco Pension Fund on Christmas Eve 2013 for a price of £15.3 million, reflecting a net initial yield of 6.67% delivering an IRR of 107%.
