Cordatus Property Trust has bought a retail block in Colchester, Essex from Glanmore Property Company. The Cordatus Property Trust is a “programmatic venture” between CBRE Global Investment Partners (CBRE GIP) and Cordatus Real Estate (Cordatus).
Three months after the historic vote by the British electorate to leave the EU, we are no nearer comprehending the full implications of the exit. So far, market reaction has been orderly; sterling has been extremely weak but this has powered a rise in the stock market.
Bow Street Mall has sold the Park View shopping centre in Whitley Bay, Tyne and Wear to Cordatus Property Trust.
It will have escaped no one’s attention that the big event in the second quarter of 2016 was Britain’s referendum on its membership of the EU and the decision by the British electorate to leave. Market reaction was swift, the value of sterling tumbling immediately in overnight trading, stock markets fell initially although most have since regained these falls and share prices of domestic banks, property companies and REITs have fallen sharply.
Cordatus Real Estate announce a further £15m of Acquisitions for the Cordatus Property Trust. Cordatus Real Estate acquires two new assets in Bradford and Belfast.
Cordatus Real Estate acquires 45,660 sq. ft. at Newbridge Industrial Estate in Bristol and a further two prime retail units (totalling 13,685 sq ft) at 82-84 St Ann’s Road, Harrow. Please see below for recent press release from Co-Star:
Cordatus buys in Bristol and Harrow
By James Buckley – Tuesday, May 03, 2016 15:11 E-mail / Print
Cordatus Real Estate has announced its latest acquisitions under the recently formed Cordatus Property Trust.
Cordatus has invested a further £7m in commercial assets where it sees income and asset management potential in line with its core strengths of generating value from underperforming assets.
Cordatus has acquired 45,660 sq ft at Newbridge Industrial Estate in Bristol (Units 6 and 7), paying £2.54m, reflecting an 8.% NIY.The premises were purchased from a private vendor and the units are occupied by DS Smith Packaging. Edwards & Co and Colliers acted for Cordatus.
In Harrow, Middlesex, Cordatus has acquired two prime retail units (totalling 13,685 sq ft) at 82-84 St Ann’s Road (HA1), paying £4.67m (at 5.74% NIY). The units were sold by Longmead Capital and are occupied by Mothercare and Carphone Warehouse. Lewis Ellis acted for Cordatus and ADS Real Estate Advisers acted for Longmead Capital.
Michael Cunningham, Director at Cordatus Real Estate, said: “This latest double acquisition is another important move as we deploy capital from the Cordatus Property Trust into assets where we see substantial potential. Consistent with our Lion Portfolio purchase and investments to date, both of these deals in Bristol and Harrow offer an attractive income yield and asset management opportunities. “We continue to build momentum with the new Trust vehicle and are focused on bringing more opportunities into the fund as quickly as possible.”
In December 2015, Cordatus announced the creation of Cordatus Property Trust in conjunction with CBRE Global Investment Partners – 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.
jbuckley@costar.co.uk
The Budget was headlined by economic downgrades and by the proposed imposition of a sugar levy on soft drinks, but for the commercial property industry, it was the amendments to the stamp duty legislation that will have most relevance.
The Chancellor altered the means by which commercial stamp duty is calculated, along the lines of the residential approach which he introduced last year. While the more progressive means of calculating the duty payable is to be welcomed, the sting in the tail was a 5% band introduced for purchases above £250,000. The other band of 2% applies to the amount of the purchase price between £150,000 and £250,000. No tax is payable on purchases below £150,000. Compared with the former approach, the new method increases the amount of duty paid on purchases above £1.05m. Given the cost of most commercial properties, all bar the very smallest are likely to face higher duty, which will impact on property’s performance.
The sugar levy, to tackle childhood obesity and due to commence in 2018, could raise as much as £520 p.a. with proceeds used towards increasing funding for sport in schools.
In a further move involving the commercial property market, the Chancellor heeded calls to intervene on the proposed up rating of business rates, stating in a £6.7bn giveaway (the most costly of the Chancellor’s business tax handouts), that one half of all UK businesses will pay either lower, or no business rates at all while any rates payable will be increased annually from 2020 by inflation as measured by the lower CPI index rather than the planned RPI index. Business rate relief for small companies was raised from £6,000 to £15,000 and the higher rate from £18,000 to £51,000 meaning that 600,000 more businesses would pay no rates.
The lowering of the Office for Budget Responsibility’s economic forecasts for the UK were not a surprise given the weaker outlook for the global economy. Flat growth of around 2% each year for the next six years, following the UK’s recent modest recovery from deep recession is hardly a ringing endorsement of government policies, but despite that, the UK’s performance is likely to prove one of the more resilient of the major economies in the near term. Given these downgrades, the country still faces major challenges in meeting the Chancellor’s target of achieving a budget surplus by 2020. Tighter controls on offsets to global corporates’ profits will assist, as will further spending cuts amounting to £3.5bn by the end of the decade, while the old favourite of Chancellors in need, the further closing of tax loopholes, is expected to generate a further £12bn by the end of the decade.
In a budget for ‘putting the next generation first’, rates of corporation tax were cut, as were taxes on oil and gas exploration and production, in an attempt to assist the beleaguered North Sea oil industry. New powers to tackle VAT fraud by overseas online retailers were also announced.
Personal tax thresholds were raised while the rates of capital gains tax were reduced. And though many thought that the Chancellor would have taken advantage of the low oil price by reinstating the fuel duty escalator, he elected to leave fuel duty unchanged, as were excise duties on beer, cider and spirits. To sweeten savers, the Chancellor raised the ISA limit from £15,240 to £20,000 from 2017 and introduced a Lifetime ISA for savers below the age of 40. The government will contribute £1 for every £4 saved up to a maximum saved of £4,000 p.a. and which is hoped to encourage the young to save, buying a home or for their retirement.
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%.
China remained uppermost in investors’ minds over the festive period. The effects of the continuing slowdown in the world’s second largest economy are resonating far beyond its shores, especially from the country’s reduction in both imports and exports.
Cordatus Real Estate Announce Creation of new £150m Joint Investment Venture with CBRE GIP
Press Release on behalf of Cordatus Real Estate and CBRE Global Investment Partners, London, 9 December 2015
Cordatus RealEstate (“Cordatus”) and CBRE Global Investment Partners (“CBRE GIP”) have announced the creation of a new £150m UK investment programme targeting smaller assets in retail, office and industrial sectors, which will be operated by Cordatus Real Estate.
The vehicle which will be managed by Mike Channing, 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 has built a reputation for generating market-leading returns by using its specialist asset management skills to drive rental uplifts and create additional value.
Tom Laidlaw, Chief Executive at Cordatus Real Estate, said: “We are delighted with the launch of Cordatus Property Trust which is the next stage in the development of our business. This is our venture using institutional capital and builds on the success of our existing Private Client business, workout mandates and Joint Ventures. We are bringing together Cordatus’ asset management expertise and CBRE GIP’s investment capacity and we are looking forward to building a long-term relationship beyond this initial commitment of £150m.”
Alex Bignell, Head of UK, CBRE Global Investment Partners said: “We are very pleased to be investing in a new vehicle with Cordatus. We see an opportunity to invest in smaller lot sized assets in the UK regions to deliver attractive returns for our clients. Cordatus is a highly experienced management team that we consider is extremely well placed to successfully deliver this strategy.
CBRE Capital Advisors acted as placement agent for Cordatus in raising the equity.
-ENDS-
For Further Information Contact:
For Cordatus – Ben Copithorne / Tom Engleback, Camargue, Email: bcopithorne@camargue.uk tengleback@camargue.uk
For CBRE – Patricia Crowley, Coporate Communications, CBRE, Email: patricia.crowley@cbreglobalinvestors.com
