Investment requirements
| Features | Sale and leaseback Development forward-funding / commitments Ground rents / long-term financing Income strips All leases on FRI. Triple net basis subject to a minimum 15 yr term |
|---|---|
| Locations | All |
| Lot size | £20m-£500m+ |
Recent transactions
North Wharf Gardens, Paddington
Location: London
Purchase price: £201.4m
Reasons for buying: Acquisition of a long leasehold interest in a development site in Paddington and subsequent forward funding of a c.617-room hotel pre-let to Premier Inn and Staycity. The property was let on two 30-year FRI leases subject to five yearly rent reviews linked to CPI compounded annually with a 0-4% collar.
Timing: January 2019
Centre Square
Location: Middlesborough
Purchase price: £22.9m
Reasons for buying: Acquisition of a long leasehold on a development site and forward funding of two office buildings pre-let to Middlesbrough Council. 35 year FRI lease with the tenant retaining an option to re-acquire the interest at the end of the lease with annual rent reviews in line with RPI with 0-5% collar.
Timing: August 2018
Charterhouse Estate
Location: London
Purchase price: £265m
Reasons for buying: Forward funding on Anglo American plc new corporate headquarters on a 25 year lease.
Key features: Just 150 metres from Farringdon station, an area with ongoing transformation driven by the introduction of Crossrail
Timing: Practical completion due in March 2021
Contact the team
