F&C REIT and AREA in £120m Property Club deal

Asset managers scoop portfolio of regional offices, retail space and shopping centre

Article posted: 18 Apr 2011

Clients of F&C REIT, including AREA Property Partners and ESAS Holding (Turkey), have completed three acquisitions in a club deal totalling some £120m.

The three investments consist of an unbroken parade of retail units and offices in Stevenage, Hertfordshire, Halton Lea shopping centre in Runcorn and a portfolio of regional offices purchased from St Martins.

The assets in Stevenage town centre comprise 29 retail units and four office suites with tenants including the likes of Topshop, Vision Express and Vodafone. The units together total 85,000 sq ft with a passing rent roll of £2.2m.

The St Martins portfolio comprises of seven regional offices in Birmingham, Bristol, Edinburgh, Glasgow, Harrogate, Leeds and Manchester. The offices together total 602,000 sq ft with a passing rent roll of £6.7m.

Zvi Noé, Director of Investments at F&C REIT, commented: “The assets acquired are fundamentally good quality, well-located properties that offer a variety of value creation opportunities, through targeted asset management initiatives, in combination with attractive entry pricing.”

Wilson Lamont, Director of AREA Property Partners, commented: “We are pleased to once again partner with F&C REIT in the acquisition of fundamentally sound UK assets offering good day one cashflow and future asset management opportunities.”

F&C REIT and AREA Property Partners were advised by Franc Warwick.

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