Demonstrating further capability in work-out work, we have supported GE Capital Real Estate with a strategic asset management service realising considerable value for the client from a number of UK properties:
Cumberland Avenue, London
At Cumberland Avenue, Park Royal, we concluded the sale of the Bakkavor Industrial investment working closely in the sales process with Lindley Mortimer to ensure the deal concluded within a specific timescale.
Cordatus Real Estate had asset managed the property since 2007 and was 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, comprises a modern freehold unit of 5,423 sq m (58,375 sq ft), let to Bakkavor Foods for a further 13.75 years. The passing rent of £683,000 per annum equated to £125.94 per sq m (£11.70 per sq ft).
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 close to £11,000,000 a yield of sub 6% was achieved. The sale price achieved was 14% ahead of book cost.
Lordsmill Street, Chesterfield
Cordatus Real Estate acting on behalf of GE Capital Real Estate have concluded the letting of two retail warehouse units at Lordsmill Street, Chesterfield.
The property comprised a 1st generation retail warehouse extending to c. 41,000 sqft which was vacant following the previous tenant entering liquidation. Assuring the rent was paid up to contractual lease end, Cordatus managed to secure a very attractive dilapidations settlement which formed the basis of an extensive refurbishment programme, delivered on time and on budget.
As asset managers Cordatus Real Estate were responsible for the overall management of the refurbishment works which included a new roof, cladding, the division of the unit into two, and the subsequent letting campaign. As a result of the refurbishment, we were able to secure TJ Morris Ltd t/a Home Bargains and TJX UK Ltd t/a TK Maxx – 2 of the UK’s best known value retailers with strong covenants, on leases of 10 years plus.
Michael Cunningham, Director, commented – ‘this project demonstrates that if you are able to deliver the right product the market will react accordingly. We are delighted with what has been achieved and by securing these two investment grade tenants, we have added 18% value increase to our clients holding’.
