Special Situations Fund acquires in Chelmsford and Southend

Orchard Street Investment Management LLP, a leading UK specialist commercial property investment manager, is pleased to provide an update on the progress of its UK Special Situations Fund. The Fund has recently agreed to acquire two properties for a total consideration of £44.4m, representing an investment of approximately 15% of its total capital.

The properties are the first acquisitions for the Fund, which was established in March 2008 to invest up to £300m in commercial property throughout the UK in all main sectors of that market over the next several years. The Fund has agreed to purchase The Royals Shopping Centre in Southend from Warner Estate Holdings PLC, for £30.7m at a yield of 9%. The Royals Shopping Centre is the principal shopping centre in Southend, and is anchored by Debenhams, Primark, Boots, TK Maxx and H&M, with a wide range of other retailers.

In a separate transaction, the Fund has also agreed to buy the Meadows Retail Park in Chelmsford for £13.7m for which the purchase yield is 7.9%. The Meadows Retail Park is fully let and the principal occupiers are Argos, Mothercare, Maplin and Blacks Leisure.

There are eight retail units in total and the park is located very close to Chelmsford town centre, and is adjacent to the successful Meadows Shopping Centre.

Both transactions complete at the end of this month.

Orchard Street was advised by Knight Frank in relation to Southend, and the vendors were advised by DTZ. At Chelmsford, Griffiths Eccles advised Orchard Street, and Edgerley Simpson Howe acted for the vendor.

In both transactions, the Fund was also represented by Mills and Reeve, who have been appointed by Orchard Street as the legal advisers to the Fund.

Chris Bartram, Chairman of Orchard Street, said:

“We are delighted with both acquisitions and look forward to adding value to them through our successful active management approach.We continue to look at a number of similar new and interesting acquisitions and the remaining capacity in the Fund leaves us in great shape to capitalise on the opportunities that will emerge in the coming months.”