CBRE Global Investment Partners and Cordatus have launched a £150m joint venture investment programme targeting smaller shops, offices and sheds.
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Global focus over the summer switched away from Greece to a potentially greater threat to global financial stability – that of China’s economic slowdown and transformation from one majored in manufacturing and investment led growth to one more aligned on consumption and services. The consequential managed depreciation of the Chinese renminbi heralded the start of significant external analysing of China’s economy with each release of economic data being heavily scrutinised.
Weakness in Q1, most notably in the US, but also in Japan, the UK and China, has prompted downgrades to full year forecasts for each of these nations, resulting in a reduction in the global outlook for the year. Despite these cuts to our growth forecasts, the underlying positive trends – accommodative financial conditions, lower fuel and energy prices, improving confidence and employment – remain intact.
Rockspring Property Investment Managers has acquired Fairhill Shopping Centre in Ballymena, Northern Ireland, for £44.6m, reflecting a yield of 8.6%.
Cordatus selected as Asset Manager partner on Rockspring’s latest acquisition.
Cordatus Plans to Convert Brutalist Croydon Offices
The following news item appeared in Property Week on the 6th August 2015…
Cordatus Real Estate is planning to turn one of the tallest office blocks in Croydon into 249 flats.
The asset manager has submitted an office-to-residential conversion application to Croydon Council in relation to the 20-storey Leon House, which was built in the mid -1960s and is regarded as one of the town’s most striking examples of brutalist architecture.
Croydon has been one of the most popular locations for residential conversions as developers have taken advantage of permitted development rights (PDR) to turn redundant offices into flats.
However, Croydon Council is looking to opt out from the office-to-resi PDR’s next month because of concerns the powers are being overused. This has prompted a rush of office-to-resi applications recently, including plans to convert Lunar House and Appolo House into 1,500 flats.
Cordatus submitted the application on behalf of receivers. Last sold for 52.3m, Leon House was part of Mapeley’s Gamma portfolio of offices that fell into recievership in 2012
Global growth came in last year at 3.4%, the same as in the previous year, but rather than build on the improving trend seen in the first half of 2014, output slowed towards the end of the year indicating the continued likelihood of only modest growth rates for both this year and next.
Cordatus Completes Sale of Jericho Boatyard, Oxford
The sale of this controversial 0.9 acre site in Jericho, central Oxford finally concluded at the end of April. Historically the site, previously owned by the British Waterways Board, had been the subject of two failed planning appeals for residential development, despite being allocated for residential use within the local plan. The site, which had lain derelict since 2005, was the subject of much interest in Oxford, with numerous local interest groups all wishing to have their input into any development plans.
Following our appointment by PwC, the administrators of Spring Residential (a Castlemore Group company), Cordatus advised that the best sales strategy with least risk, given the previous planning history and with only minimal new capital available to the administrators, was to agree an unconditional sale of the site in its existing state i.e. without incurring the expense and uncertainty of attempting to gain a planning consent.
Cordatus subsequently negotiated the sale of the site to SIAHAF (Strategic Iconic Assets Heritage Acquisitions Fund) at a price that was 75% above business plan exit target.
Cordatus Acts on Prime Sutton Coldfield Leisure Development
Salmon Harvester Properties has acquired the freehold of a prime retail and leisure development opportunity in Sutton Coldfield from Administrators at PWC appointed over Spring (Sutton Coldfield) Ltd., part of Castlemore Securities (in administration). The agreed price was £6.4m
Cordatus Real Estate, acting as asset managers on behalf of PWC, have secured planning consent for a 68,624 sqft retail led development on the 2.73 acre site in Mere Green – an affluent part of Sutton Coldfield. In addition Cordatus secured pre-lets to M&S and Boots as well extending the occupation of Greene King. In total some 36% of the scheme is pre-let and expected development costs are around £17.5m.
M&S has signed for a 16,178 sq ft store on a 20 year lease, Boots has agreed a 10 year deal for 3,544 sq ft while Greene King, operating as Old Speckled Hen, has committed to a new 10 year lease in its existing 4,500 sqft unit. Three other stores in the 11-unit scheme are under offer.
Matthew Hammond, Partner at PWC and joint Administrator for Spring said: “We are delighted that we have secured the sale of this site to Salmon Harvester. The price achieved fully justifies our strategy of holding this asset through the planning stage and securing the pre-lets to major retailers. Salmon are a very credible developer and very well placed to deliver this scheme to the community”
Rorie Henderson, Development Director at Salmon Harvester said: “This is a superb ‘oven-ready’ development opportunity in an affluent location and as such we had to fight off some stiff competition. We are delighted with the pre-letting success to date and there are numerous discussions taking place with other potential occupiers.”
Construction work is due to start in July 2015 with completion scheduled August 2016.
Cushman & Wakefield advised the vendor, HSM represented Salmon Harvester. Cordatus acted as Asset Managers to PWC. Rowley Thompson are letting agents.
For further information please contact:
Michael Cunningham, Director, Cordatus Real Estate on 0131 240 1470
On behalf of GE Real Estate, Cordatus has completed the signing of agreements for lease with DFS and the Range at Grantham Retail Park.
