Orchard Street acquires portfolio of seven prime UK commercial properties for £149.65 million

30 October 2015

30 October 2015  

Orchard Street acquires portfolio of seven prime UK commercial properties for £149.65 million 

Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of The Alhambra Portfolio, a portfolio of seven prime commercial assets, for £149.65 million, reflecting a net initial yield of 5.5%. Orchard Street acquired the portfolio at property level on behalf of a pension fund client from a private investor.

Six of the seven assets are in the South East of England, while five are freehold. Providing 805,519 sq ft in total, the portfolio comprises a Greater London Tesco distribution facility, five office buildings and a Sainsbury’s convenience store and petrol filling station. All of the properties are single let to tenants with strong covenants on a WAULT of 17.4 years.

The portfolio comprises the following assets:

-         Beam Reach Business Park in Rainham, Essex: a 572,837 sqft distribution centre, occupied by Tesco;

-         Tamblin Way in Hatfield, Hertfordshire: 88,114 sqft of freehold office space, leased by Affinity Water Limited;

-         Kitemark Court in Milton Keynes, Buckinghamshire: a 57,423 sqft freehold office development, leased by The British Standards Institution;

-         1500 Eureka Park in Ashford, Kent: 35,759 sqft of office space, let to Smiths Medical International;

-         Saxon House in Peterborough, Cambridgeshire: 29,549 sqft freehold offices, occupied by BGL Group;

-         One Curo Park in St Albans, Hertfordshire: 17,273 sqft freehold office development, rented to John Sisk & Son Ltd;

-         Sainsbury’s filling station & convenience store in Horley, Surrey: a freehold development on a 0.9 acre site.

Gary Felce, Partner at Orchard Street, commented:

“This portfolio acquisition presents a rare and exciting opportunity for Orchard Street to secure a diversified mix of prime commercial properties in highly sought-after areas of the UK’s South East and East Midlands. All assets benefit from excellent fundamentals and exceptional covenant strength, whilst presenting attractive prospects for future income growth.”

END

For more information:

Dana Eisner
Orchard Street Investment Management
+44 (0)20 7494 8860
deisner [at] orchard-street.co.uk

Talia Jessener
FTI Consulting
+44 (0)20 3727 1000
osim [at] fticonsulting.com

Notes to Editors:

Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.