7 Moorgate, London EC2R
Cordatus Real Estate has acquired a long leasehold interest in 7 Moorgate, a striking core Grade A office building in the City of London, for an undisclosed sum behalf of a private family client.
The Grade II Listed property was developed in 1990 behind an impressive retained facade. The property has been subject to a series of rolling refurbishment programs since this date. The property provides approximately 43,000 sq ft of office and ancillary accommodation arranged over basement, lower ground, ground and six upper floors. The property is currently fully let to 11 occupiers. Cordatus was advised by GM Real Estate and JLL
2 Roundwood Avenue, Stockley Park
Europa Capital and Cordatus Real Estate completed an off market sale of 2 Roundwood Avenue, Stockley Park to Henderson UK Property OEIC HUKPOEIC TIAA Henderson Real Estate (TH Real Estate), in December 2014. On behalf of the Henderson UK Property OEIC, has purchased 2 Roundwood Avenue from Europa Capital and joint venture partner, Cordatus Real Estate, for a price in excess of £46m.
The deal follows the completion in November of a comprehensive refurbishment of the property and its pre-let to Gilead Sciences Europe Limited ('Gilead'). Europa and Cordatus purchased the property which comprises two co-joined buildings in early 2013. Having negotiated an early dilapidations settlement with outgoing tenant Hasbro, the joint venture then carried out a CAT A refurbishment of the north building whilst simultaneously negotiating a new 10 year lease of both buildings, totalling 97,720 sq.ft. to Gilead.
The letting to Gilead represented one of the largest Thames Valley lettings of 2014. Europa and Cordatus were represented in the Gilead letting by Lambert Smith Hampton and BNP Paribas Real Estate.
Rob Sim, Partner and Head of Northern Europe at Europa, comments, 'we have been delighted with our joint venture with Cordatus, the quality of the refurbishment has transformed one of the original Stockley buildings into a grade A headquarters for Gilead.
The completed building has proved attractive to investors with a number of unsolicited approaches and we are very pleased to have completed the sale to Henderson.
40 Cumberland Avenue, Park Royal, London NW10
Cordatus Real Estate had asset managed this property since 2007 and were responsible for concluding the 2011 rent review and the concurrent lease re-gear and 10 year lease extension to 2026 at the property.
The property, which is located on London’s premier industrial park, comprised a modern freehold unit of 5,423 sq m (58,375 sq ft), which was let to Bakkavor Foods for a further 5 years.
At the final rent review, the passing rent was increased from £598,000pa to £683,000 pa, (+14.2%, reflecting £11.70 per sq.ft) and the lease was re-geared adding a further 10 years to the lease term and in return for 15 months rent free. The investment was offered to the market at a price of £10,325,000, reflecting a yield of 6.25% and following a targeted marketing campaign a price of £11,000,000 and a yield of sub 6% was achieved.
The sale price achieved was 45% ahead of the valuation prior to the lease re-gear.
CPI Portfolio – Shopping Centres in Gravesend, Leighton Buzzard and Waterlooville
In 2011, we were appointed to manage a portfolio of shopping centres in Gravesend, Leighton Buzzard and Waterlooville with the objective of adding short term value.
The Thamesgate Shopping Centre, Gravesend, is a freehold, 80,360 sqft. development incorporating 20 retail units, mall retailing, an office block and a multi storey car park. Waterbourne Walk in Leighton Buzzard is the town’s main retail area, an 84,454 sqft. open shopping centre with 21 retail units anchored by a Waitrose supermarket, plus three external units.
Wellington Way, Waterlooville, is an open, pedestrianised 56,285 sqft. arcade of 25 retail units anchored by an Iceland supermarket. It is the town’s second largest shopping centre.
Through active, innovative management, we have completed 30 lease renewals, re-gears, lettings and rent reviews and taken positive control of car park income and mall commercialisation opportunities. In doing so, we have increased rental income by 15% and, amidst a challenging retail environment, we secured the sale of the properties at a price far in excess of the business plan.
Gallagher Retail Park, Dundee
We acquired this prime retail park with JP Morgan in 2008. It is designated in local planning policy as the only open Class 1 retail park in Dundee. This planning status has strengthened the park’s capital value since purchase.
We have further enhanced value by adding c£275,000 of annual income through the letting of a 22,000sq.ft. unit to M&S Simply Food, increasing the attraction of the location to retailers and improving rental values. We are now working on a potential extension to the park to provide additional units and further asset management of the existing park.
St Georges Retail Park, Leicester
Acquired in November 2008, this park consists of approximately 165,000 sq ft of open A1 retail space and comprises ten terraced units together with a fast food unit and 512 parking spaces.
The park, which is prominently located on Leicester's inner ring road, offers prime retailing space at a significantly lower level of rent than is available at Leicester's Fosse Park.
Purchased for its future potential, we negotiated and completed an agreement with a leading supermarket to build a 70,000 sq ft store on stilts on the park at the same time as carrying out a refurbishment of the park. We subsequently obtained detailed planning consent and sold the park to a leading Fund generating a total return significantly in excess of our business plan targets.
Queens Arcade, Cardiff
We have completed the extensive refurbishment of this 105,000 sq ft shopping centre situated in the heart of Cardiff's prime retailing pitch.
The main entrance to the scheme was also comprehensively re-configured to create better retail space. The centre was re-branded, following which the tenant mix was improved and significant lettings secured. This was successfully achieved despite a far larger competing centre being developed adjacent.
Longwell Green, Bristol
Acting on behalf of the Administrator for a property company, our role was to maximise value through active asset management before exiting at the highest possible price.
The asset comprised a 20,000 sq ft first generation, poorly configured, retail warehouse property in Longwell Green, Bristol. 50% of the unit was vacant and the remainder was let on a short-term lease to a national retailer. We established that the letting campaign needed invigorating with the vacant unit needing to be presented in a much more attractive light – previous letting offers had been at low rents for short terms. We commissioned architects to draw up imagery for a refurbished scheme and brought on board specialist letting agents to undertake a proactive marketing campaign.
As a result of our letting campaign we secured two very good offers for the vacant unit based on a sub-division of the unit and partial change of use to A3. The rents and terms secured were considerably better than those secured under the previous campaign. Based on these offers, we secured planning for the revised scheme and funding for the refurbishment.
At this time, we received an offer to purchase the asset in its current form. By securing the offers we did, we were able to demonstrate a significantly higher value for the unit than would have been the case prior to our involvement. As a result, we were able to negotiate the offer price up to an acceptable level which allowed the client to achieve a price well above initial target value for the asset, without having to incur the risks in refurbishing.
Berkeley House, Godalming
On behalf of GE Capital Real Estate, Cordatus concluded the sale of this office building at a price significantly above business plan forecasts.
Following the settlement of the dilapidations claim with the previous tenant, an agreement for lease was signed with the Surrey and Borders Partnership NHS Foundation Trust. The property was then comprehensively refurbished and a change of planning use secured from B1 offices to D1, Non Residential Institutions (Clinics and Health Centres), allowing the lease to complete.
This is a classic example of the range of the organisational skills that a good asset manager has to be able to offer their clients – from arranging dilapidations, to marketing of vacant space, to lease negotiations through to concluding documentation with lawyers, followed by appointment of the right professional team to manage the refurbishment and securing planning, to ultimately achieving a successful sale.