CoStar Press 02/02/2016
By Alistair MacPherson – Tuesday, February 02, 2016 13:36
Cordatus Real Estate has bought 33 Bothwell Street in Glasgow city centre from Town Centre Securities for £6.98m, representing a net initial yield of 6.62%.
The six-floor office building situated within the International Financial Services District, totals 27,375 sq ft and is home to Starbucks, Chase Devere IFA group plc, Turner & Townsend Group and Lambert Smith Hampton, generating a total annual rent roll of £484,873.
The acquisition is the first office purchase for the newly-formed Cordatus Property Trust and follows quickly on from the acquisition of the £25.7m Lion Portfolio which completed in December.
Michael Cunningham, Director at Cordatus Real Estate, said:
“Our acquisition at Bothwell Street fits ideally into our fund strategy for investing in well-located, smaller lot size assets offering an attractive income yield and asset management opportunities. It follows quickly after our acquisition of the Lion industrial portfolio and further demonstrates our ability to secure properties where we can deploy our proven asset management skills to generate value. We are building up a strong head of steam with the new Trust vehicle and are focused on bringing more opportunities into the fund as quickly as possible.”
Edward Ziff, Chairman and Chief Executive of Town Centre Securities PLC, said;
”The sale of 33 Bothwell Street forms part of our long-term strategy to invest in the London suburbs where there are excellent prospects for rental growth.”
In December 2015, Cordatus announced the creation of Cordatus Property Trust in conjunction with CBRE Global Investment Partners (“CBRE GIP”) – with initial funding of £150m the vehicle is targeting investment opportunities in strong micro locations, primarily in UK regional markets, with typical lot sizes of between £3m to £15m, to generate above market income distribution. Cordatus is actively seeking further investment opportunities and already advanced on a number of potential acquisitions which it is working to close during this quarter.
Cordatus was represented by Johnston Waddell;
Town Centre Securites was represented by Sheridan Property Consultants and Lambert Smith Hampton.
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