Columbus UK Real Estate Fund, advised by Columbus Capital Management, has completed the acquisition of the majority of the SEAL portfolio from USS.
The portfolio was purchased for GBP30.8m.
The 460,000 sq ft portfolio consists of seven estates in Uxbridge (x2), Hemel Hempstead, Wokingham, Hook, Alton and Ashford. The estates are all in well established locations and are let for an average weighted term of over 4 years. The passing rent is GBP6.50 per sq ft and the current vacancy rate is approximately 10 per cent.
In a separate transaction Columbus UK Real Estate Fund, advised by Columbus Capital Management, has acquired Phase I of the Parkfield Industrial Estate in Battersea, London SW11, just to the east of Clapham Junction Station. The estate was acquired “off -market” for GBP4.25m; an initial yield of eight per cent and a capital value of GBP110 per sq ft. The passing rent is GBP10.85 per sq ft and the current vacancy rate is approximately 15 per cent. The estate adjoins Phase II of the Parkfield Industrial Estate, largely let to Café Nero, which Columbus acquired in March 2012.
Santander has extended an existing senior debt facility to finance the both acquisitions.
Joe Froud (pictured), managing partner of Columbus Capital Management, says: "We set out to build a London and South East multi-let industrial portfolio in 2010 as we anticipated high yields but good occupational demand. The barriers to entry are high due to the smaller lot sizes and demands upon management resource however the occupational performance is as good as anything in our portfolio other than Central London offices.”
Tudor Toone advised Columbus Capital Management on the acquisition of the SEAL portfolio whilst DTZ acted for the vendor. Jones Lang LaSalle and Astranta Asset Management advised Columbus Capital Management on the acquisition of Phase II at Parkfield Industrial Estate, Battersea.