RBS Real Estate Asset Management is bringing a portfolio of 26 UK regional commercial property assets to the market seeking offers over GBP87.65 million, representing a net initial yield of around 9.75 per cent.
RBS has appointed CBRE to market the 939,000 sq ft “Silverbird” real estate portfolio, which includes a number of dominant office buildings in regional cities, as well as six leisure and retail assets, three industrial assets and a leased hotel.
The portfolio is the second brought to market by RBS, following the sale of the Sapphire Portfolio in Q4 2013, and is in line with its strategy of seeking to maximise the value of property assets ahead of sale through asset management.
Silverbird has a net annual income of over GBP8 million from around 117 separate tenants and a weighted average lease term of over 10 years. RBS has completed a programme of capital expenditure on assets within the portfolio and has refurbished much of the vacant space, which comprises around 11 per cent of the portfolio, resulting in significant potential upside for the purchaser.
Key assets within the portfolio include:
· Pacific House, Glasgow – RBS has recently undertaken a GBP2.25 million refurbishment on this six-storey office building. Located within the central business district, Pacific House offers 52,750 sq ft of flexible open-plan floorplates. Key tenants include Ernst & Young and CBRE.
· No 1 and 2 Cathedral House, Newcastle – a 101,000 sq ft office building in central Newcastle that RBS has refurbished and let to a number of key tenants including Trillium.
· Wellington Street, Hull – a 37,000 sq ft modern office building constructed in 2007 currently occupied by tenants including PWC, Barclays Banks and Baker Tilly.
· Shiprow, Aberdeen – a modern multi-screen cinema let to Vue until 2026.
Helen Gordon, global head of RBS Real Estate Asset Management, says: “The Silverbird portfolio represents the second major real estate portfolio brought to market by RBS, and is an excellent example of our strategy to drive returns through both asset management of the properties and our ability to package them into an attractive portfolio at the optimum time so that they will be best received by the market.”
Ian Nicol, head of offices, RBS Real Estate Asset Management, says: “Silverbird consists of high quality, well managed assets, which have benefited from significant capital expenditure on refurbishment programmes making them more attractive to potential tenants. The portfolio still has the potential for upside for the purchaser, and given the continued interest in UK regional real estate, we anticipate a strong level of demand.”