Cordatus have kept a fast pace throughout 2014 and ended with a flurry of transactions in a busy final quarter.
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Cordatus Real Estate and Europa Capital Flying High with Sale of Stockley Park
Cordatus are delighted to announce that TIAA Henderson Real Estate, on behalf of the Henderson UK Property OEIC, has purchased 2 Roundwood Avenue, Stockley Park from Cordatus Real Estate and joint venture partner Europa Capital for a price in excess of £46m.
Cordatus Real Estate and Europa Capital embarked on a Joint Venture in early 2013, having identified an opportunity to buy the 94,000sqft headquarters building near Heathrow.
This strongly located building had short term income and a dated specification. Following careful due diligence and consent processes, the JV team negotiated an early dilapidations settlement with outgoing tenant Hasbro, and completed an extensive CAT A refurbishment and extension to the building.
The newly refurbished building totalling 97,720 sqft was then let on a 10 year lease to Gilead Sciences Europe Ltd, representing one of the largest lettings in the Thames Valley in 2014.
This building proved attractive to investors and has been sold off market to TIAA Henderson Real Estate, as part of their growing Henderson UK Property OEIC Fund.
Cordatus Real Estate acquires 7 Moorgate
Cordatus Real Estate Partners has acquired a long leasehold interest in Basildon House, 7 Moorgate, a core Grade A office building in the City of London, on behalf of a private client.
The Grade II Listed property was developed in 1990 behind an impressive retained facade and has been subject to a rolling refurbishment programme.
The property provides approximately 43,000 sq ft of office and ancillary accommodation arranged over basement, lower ground, ground and six upper floors, and is currently fully let.
No Bargains in Alloa this Christmas!
Cordatus has advised GE UK Real Estate on the sale of a retail warehouse and development land at Alloa Retail Park, which completed just before Christmas
The asset comprised a 25,000 sqft purpose built retail warehouse constructed in 1998, with an adjacent ½ acre development plot, next to a Morrison’s supermarket and petrol station. The unit which benefits from open Class 1 (non-food) Retail use, was let to B&M Bargains until September 2023, at a passing rent of £212,500 pa.
The property was sold for a price 34% above the current valuation, reflecting a net initial yield of c6%.
Andrew Murray, Asset Manager, commented…
“We are delighted to conclude the sale of this asset and achieve a strong exit price for our client. This demonstrates that for the right product there are still deals to be done in the regions.”
Coates and Co acted as joint sales agent.
Acting on behalf of GE UK Real Estate, the sale of the retail property at 116 Terminus Road Eastbourne was completed at a price that was 8% above book value. The property is let to Superdrug until August 2021 at a passing rent of £131,000pa.
Westbrook Partners has recently acquired the whole loan secured on 3 regional shopping centres for a combined price of c£31m from a client of Cordatus and Firedog Moss, an entity owned by Ellandi.
Cordatus on the fast track with £15m sale of Stevenage Retail Park
Cordatus Real Estate the UK asset and development management specialist, has completed its latest investment sale with the disposal of Stevenage Retail Park to Threadneedle Property Unit Trust for £15m.
The 58,000 sq ft Park, which is occupied by brands including PC World, Halfords and Laura Ashley, formed part of the Castlemore Securities portfolio over which PWC was appointed as RPA Receiver in February 2009.
Cordatus was instructed as asset manager in May 2010 and, against a relatively restrictive planning environment, broadended the scope of the planning consent to Open A1 non-food to enhance the range of tenants that could occupy the park. In addition cordatus secured a new lease of a previously vacant unit on a 10 year term to American Golf at an attractive rent.
The £15m disposal price reflects a net initial yield of 7.0%.
Cordatus has developed a niche capability for managing and enhancing values for distressed assets. This latest disposal is in line with the Administrator’s aspiration to reposition and dispose of the site and, having actively managed the Park in order to increase its value, Cordatus has now sold the site at an optimum time in the market to maximise returns for the Administrator.
Matthew Hammond, Partner at PWC, said, “£15m is a solid return and reflects the repositioning of the Park that Cordatus has helped us to achieve. The wide marketing of this asset created some competitive bidding which, in turn, has generated an attractive price for the Administration. It is a very satisfactory result.”
Michael Cunningham, Director at Cordatus, commented, “We are delighted to have secured the disposal of this asset to a high-calibre institutional investor. We executed our asset management plan effectively and it was the right time to sell to maximise returns.”
Cordatus Makes the Grade with Mapeley Alpha Portfolio
Cordatus Real Estate, the UK asset and development management specialist, has completed deals on 50% of Mapeley’s 20 site Alpha Portfolio, disposing of 10 properties for a total of £62 million and achieving 41.0% ahead of book value.
Cordatus, which has established a strong track record in workout instructions, was appointed by Jones Lang LaSalle acting as LPA Receivers in July 2012. Now, 18 months into the instruction, it is half way through an intensive asset management programme to achieve maximum returns on the total portfolio of 20 secondary office buildings spread across the UK, from Croydon to Edinburgh.
Cordatus was tasked with maximising the value of the portfolio through proactive asset management and strategic sales.
In London, the sales include Hercules House (a 130,000 sq ft office building dating from the mid 1950s in Waterloo, Lambeth where the property was let to the UK Government for a further 12 months) and Delta Point, the 250,000 sq ft vacant former BT offices in Croydon. The other eight sites sold include properties in Cardiff, Merthyr Tydfil, Ilford, Peterborough and Sheffield.
Michael Cunningham, Director at Cordatus, said: “Achieving sales proceeds of 41% ahead of book value with secondary office stock and in very challenging market conditions is testament to the effectiveness of the Cordatus approach. We bring our detailed market knowledge and wealth of accumulated experience to bear on creating the right strategies for specific assets. These results achieved at the mid-point with this portfolio are impressive and show what can be done when the right approach is applied.”
A Fresh View for 2014 – Cordatus Has Moved!
After 5 years in Walker Street, Cordatus Real Estate has moved into newly refurbished offices in Edinburgh.
Our Scottish office is now located at 26 Alva Street, a Grade A listed Georgian Town House in the heart of Edinburgh’s west end.
Tom Laidlaw, Chief Executive commented “ We are delighted to be in our new accommodation. We now have a superb working environment, with additional space to expand into if needed. As Cordatus enters its 8th year, Alva Street is the ideal premises for the business going forward”.
Happy New Year, Goldsworth House, Woking
Acting on behalf of GE Real Estate, Cordatus advised on the sale of Goldsworth House, a 16,500sq.ft. office property in Woking.
As a very good way to start the New Year, the property was sold with the benefit of vacant possession on 3 January 2014, at a price that was 49% above book value.
RARE and Hurst Warne acted as letting agents.
