NEWS
AEW UK Core Plus Property Fund acquires Northgate House in Reading for £8 million
AEW, one of the world’s leading real estate investment and asset managers[1], announces the acquisition, on behalf of the AEW UK Core Plus Property Fund (the “Fund”), of Northgate House on Valpy Street, Reading, for £8 million from a private property company.
The c. 66,000 sq ft town centre office building is arranged over basement, ground and seven upper floors and is occupied by a government department.
The acquisition forms part of AEW’s strategic site assembly, adding to its existing ownership of Tangent House and a public house to the rear of Northgate House, creating a highly prominent site in a location lending itself to multiple end uses.
Reading is an affluent commuter town in the heart of the Thames Valley in Berkshire, approximately 40 miles west of Central London. The town has a catchment population of 391,000 and is home to a number of multi-national firms. The property benefits from excellent transport links and is within walking distance of Reading Railway Station, providing access to mainline rail services and the Elizabeth Line, as well as the M4 (junctions 10, 11 and 12), which is located approximately two miles to the south.
Michael Shears, Executive Director at AEW, said: “The acquisition of Northgate House is in line with the Fund’s investment strategy of acquiring assets in core locations which are underpinned by long-term, strong capital values with optionality in viable end use. Northgate House sits on a gateway site in Reading town centre in a market with limited new delivery of Grade A office space.”
Tudor Real Estate represented AEW whilst ACRE Capital Real Estate & Hatch Real Estate acted for the vendor.
Sirius Real Estate acquires £33m London offices
Sirius Real Estate, through its BizSpace subsidiary, has completed the acquisition of a £33.5m portfolio of three assets in North London from a closed-ended fund.
The assets, dubbed the Courtyard Collection, are based in busy suburban areas, with two in the Borough of Islington and one in the Borough of Camden.
The three assets have a combined area of 103,962 sq ft of primarily multi-let studio workspaces. They have an occupancy rate of just under 70%, which the group views as providing significant potential for growth. The properties are let on flexible leases and have a WAULT of 3.1 years.
The buildings have more than 70 customers, the 10 largest of which occupy more than 50% of the occupied area. The purchase price represents a NIY of 7.3% which, through active asset management initiatives, should generate a running yield in excess of 10% at maturity.
Andrew Coombs, chief executive at Sirius Real Estate, said: “In the current market, we are focused on improving rental levels and providing tenants with the flexibility and services they need.
“We are increasingly seeing attractive acquisition opportunities across both Germany and the UK and will continue to pursue our asset recycling activities to support the long-term growth of the group.”
Sirius Real Estate was represented by Tudor Real Estate.
Strategic Land acquisition near Gatwick Airport
Columbia Threadneedle Investments have acquired a strategically important 6-acre site known as Meadowcroft, by Gatwick airport.
The site, which offers unrivalled access to Gatwick Airport, was acquired for £3m (£500,000 per acre), unconditionally, off Berwick Hill who had been promoting the wider site of some 70 acres in a Joint Venture with Surrey County Council and Reigate and Banstead District Council for a mixed-use office led scheme. The acquisition of Meadowcroft will see the 2 larger sites returned back to the landowners.
CTI are exploring a combination of airport related uses for the site, including open storage, vehicle storage and ancillary industrial uses.
Tudor Real Estate advised CTI on the purchase whilst the vendor represented themselves.
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AEW Sells Milton Keynes Warehouse
AEW UK Real Return Fund has sold the 41,786 sq ft Celestra warehouse at 1-5 James Way, in Bletchley, Milton Keynes, to an unnamed institutional investor for £4.05m.
The sale price reflects a net initial yield of 6.94% which equates to a capital value of approximately £97/sq ft. The warehouse is leased to electronic point of sale and IT provider Celestra until December 2027 at a rent of £300,000 per annum, equating to £7.18/sq ft.
AEW was represented by Tudor Real Estate and the institutional purchaser was represented by Atlas Real Estate.
Buccleuch acquires 50% stake in developer Bloc
Buccleuch Property has acquired a 50% stake in Bloc Group, the London and Manchester-based property developer.
Run by chief executive officer Richard Page and development directors Nicola Tindale and Richard Thomas, the company has a range of projects across the UK.
The new joint venture will press ahead with several mixed-use projects in Newcastle, Salford, Northampton, Exeter and Henley alongside the group’s land partners, the Canal & River Trust and Network Rail.
These projects have a gross development value in excess of £300m.
Buccleuch said the deal would provide Bloc with “significant financial firepower to capitalise on a growing pipeline of opportunities”.
Page said: ‘Buccleuch’s covenant, profile, track record and resources will help the Bloc management team grow and expand the business. This is an exciting next step for Bloc.”
David Peck, managing director at Buccleuch Property, added: “Richard and his team have created a highly focused development platform that has great relationships with a number of significant landowners with a particular focus on sustainability and the communities in which they operate – this very much aligns with our aspirations for the future.”
Tudor Real Estate advised the joint venture partners on the restructuring of the Bloc shareholding.
Melburg sells Wigan industrial estate for £15m
Melburg acquired the 300,000 sq ft estate for £8.75m in an off-market deal in 2020, as part of a sale and leaseback with the owners of domestic appliance producer G2S.
The estate was repositioned by changing the tenant mix and through asset management, bringing the asset to 100% occupation, increasing passing rents by 55% and increasing the weighted average unexpired lease term from 3 years to 6.23 years.
Melburg chief executive Jack Burgess said: “The lifecycle of Swan Lane highlights the platform’s ability to identify off-market value propositions, understand occupiers’ operational drivers, quickly execute complex management initiatives and realise exceptional risk-adjusted returns. The proceeds from the sale will be redeployed into similar opportunities”
Tudor Real Estate, Cushman & Wakefield and Colliers International advised Melburg. Lambert Smith Hampton acted for the purchaser.
US investor swoops for industrial and logistics scheme
US investor Westbrook Partners has acquired Holbrook Park, currently under construction, to add to its Northburn Logistics platform.
Following its acquisition of six industrial assets across the UK earlier in 2022, the latest addition brings the total square footage to more than one million sq ft across 137 units.
Holbrook Park in Coventry – the multi-let scheme which is being developed by Chancerygate comprises a total of 254,678 sq ft across 31 trade and industrial units ranging in size from 2,153 to 24,649 sq ft.
The scheme is being delivered in two phases, with Phase 1 due to reach practical completion in August this year and Phase 2 to start construction soon afterwards.
David Tew, director in Avison Young’s Industrial Team, and joint agent for the Holbrook Park, said: “The quality specification of the buildings, and continuing levels of limited supply, mean that we’ve already received excellent levels of interest across Phase 1, despite construction not being due to conclude until August. Terms are out on multiple units and a number are already under offer as well.
“The development appeals to a wide range of prominent national companies, together with established local and regional occupiers who are looking to move in to high-quality buildings which also provide a host of environmental benefits. We look forward to working with Northburn and our joint agents in the coming weeks and months in order to convert this strong interest.”
David Collard, managing principal of Westbrook Partners, added: ”We are delighted to have acquired another best-in-class asset for our Northburn Logistics platform, located within an excellent position in Coventry. We are looking forward to working with the excellent team at Chancerygate on the delivery of another high-quality, highly sustainable, logistics development, together with Avison Young and KWB as we lease up the property.”
Other assets within the platform are located in Aston Clinton, Brackley, Leicester, Edinburgh, Leeds and Peterborough, with further acquisitions planned in the coming months.
The latest addition is being marketed by joint agents Avison Young and KWB.
Tudor Real Estate acted for Northburn on the acquisition.
Chancerygate offloads Barrow-in-Furness retail warehouses
Industrial developer Chancerygate has disposed of a retail warehouse park in the centre of Barrow-In-Furness to Waypoint, on behalf of an in-house client, React News can reveal.
The sale price for Cornmill Park was £11.7m, reflecting a net initial yield of 6.38%.
The park, off Hindpool Road, comprises two modern units with a total area of 101,780 sq ft.
It is fully leased to DIY retailer B&Q and Sports Direct. The rent stands at £796,360 per annum, representing an average rent of £9/sq ft assuming half rent on the Sports Direct mezzanine.
The property provides a large car park and is near Hollywood Park, Hindpool Retail Park and Cornerhouse Park.
Tudor Real Estate and Savills represented Chancerygate. Mason Partners represented the buyer, Waypoint.
Westbrook Partners Forward Purchase Prime £172.5m industrial Portfolio
Westbrook Partners, advised by Investment and Development funding specialists Tudor Real Estate, has agreed to forward-purchase two urban logistics portfolios for £172.5m from Chancerygate and Bridges Fund Management.
The first portfolio, which was wholly owned by Chancerygate, is called Urban Portal and comprises three multi-unit logistics developments located in Aston Clinton, Brackley and Leicester. The schemes will total 347,177 sq ft across 45 units and all three are set to practically complete in the next 12 months.
The second portfolio, called City Gateway, comprises three multi-unit developments in Edinburgh, Leeds and Peterborough. The portfolio will total 485,389 sq ft across 61 units, providing 43 industrial/warehouse units, 16 trade counter units and two drive throughs. The three schemes are set for practical completion in the next 24 months.
In total, the portfolios comprise 832,000 sq ft over 42 acres, with each of the six schemes being acquired on a forward-commitment basis. All the newly built units will have market leading green credentials and will be constructed to the highest specification.
Commenting on the deal, Mark Donnor, managing principal of Westbrook Partners, said: “We are delighted to have concluded the deal with Chancerygate and Bridges Fund Management, in such a timely manner. “The 832,000 sq ft of Grade A stock is already receiving strong occupational interest for a variety of units”.
Rob Tudor, Managing Director of TRE commented "this is a major deal for the new business, and I was very pleased the TRE team managed to conclude the transaction on behalf of Westbrook Partners. Mark Donnor, David Collard and the entire Westbrook professional team did a great job getting the deal across the line in such a short period of time".
Haddenham industrial estate sells for £14m
Tavis House Properties, the specialist warehouse company run by Martin Smith, has sold their most recently completed development in Haddenham for just under £14m.
Tavis House Business Centre is a brand new multi-let and long leasehold industrial estate totalling 76,100 sq ft, arranged across 13 leasehold units and 7 long leasehold units, completed in March 2021. The leasehold part of the scheme, when fully let will produce an annual rental income of £550,000, reflecting an average rent of £9.15 psf. The long leasehold units were sold off at an average of £190 psf.
Commenting on the deal, Martin Smith said “we are delighted to have let and sold another scheme so quickly after practical completion, as is our joint venture partner Stellar Asset Management. The sale reflects our ongoing strategy of buying strategic off market sites in locations that are under supplied and we are keen to find more opportunities of this nature”.
Tudor Real Estate represented the vendor. The purchaser of the leasehold units, TPG Real Estate and 4th Industrial UK was represented by Fields Commercial.
Senior Leaders Hopes For 2022 - Property Week Article
Rob Tudor
Anyone who managed to predict how 2021 played out should be buying a lottery ticket this Saturday! Covid 19, lockdowns, work from home directives, should have seen the 2021 UK Investment market grind to a halt. But, the markets and the people in those markets remained resilient last year and in many instances, the key sectors TRE operate within (predominantly industrial / Last Mile and Value add) saw some impressive yield compression.
So, what are the sectors TRE are expecting to perform the strongest during 2022?
The outlook for the industrial/warehouse market remains strong, with record yields, land prices and rents all set to better 2021. Developers and Investors, specialising in both Big Box and last Mile, should enjoy a busy 12 months. Close on its heels, Data Centres are a sub sector that is emerging as a front runner for both impressive rental growth and expanding investor interest. The availability of power is a key component here, and where available, DC operators could easily out gun Developers to acquire sites well connected to key hubs in London, the South East and the major provincial Cities.
Offices face a mixed 12 months, with Landlords needing to adopt a flexible approach to new and existing tenants, as the new working environment continues to unfold for employers. Life Sciences and R&D in centres of excellence such as Oxford and Cambridge look set to continue the impressive growth seen through the latter part of 2021.
So, for the next 12 months ahead, all here at TRE see no Commercial reasons why the markets we operate in cannot remain robust, as there is a considerable weight of money chasing sectors that show signs of rental growth and strong tenant demand, but we need to be wary of the ongoing issues associated with Coronavirus, the possibility of interest rate rises, build cost inflation and further Brexit fallout. The major re-basing in the retail warehouse sector has probably happened, but the industrial/warehouse market has further to go this year, as has the strongly emerging Data Centre market. Offices may be a bit more of a mixed picture, but the strong showing in Life Sciences is set to continue at a pace.
So, fingers crossed that we can enjoy a relatively normal working environment this year and there is plenty of investment activity and interesting deals for all of us in 2022!
TUDOR REAL ESTATE APPOINTS NEW HEAD OF INVESTMENT
Tudor Real Estate has continued its business expansion with the appointment of well known investment agent Philip Hunt.
Philip joins as Head of Investment and will run the rapidly expanding team in conjunction with founding Director, Rob Tudor.
Philip has over 30-years experience within the investment industry having previously worked at both Savills and Lambert Smith Hampton, before running his own business for the past 11 years. Key clients include AEW, Paloma Capital, London & Cambridge Properties and Waypoint.
Commenting on the appointment, Managing Director Rob Tudor said “We are delighted to have Philip on board. His experience and range of clients dovetails very well with the core Institutional, Property Company and Private Investors TRE is currently working with. We have over £100M of sales currently in the market, so Philip has plenty to get involved with”.
Philip said “when Rob approached me to join TRE, it was an opportunity I couldn’t turn down. His new business, with family values at its core, is something I bought into straight away, and I am looking forward to working closely with Rob, James and Abigail to continue to build this exciting and fast-growing business”.
SALMON PROPERTY JOINS WITH WESTBROOK FOR £100M UK INDUSTRIAL DRIVE
Salmon Property has formed a joint venture with US real estate investment management business Westbrook Partners to invest £100m in the industrial and logistics sector, Property Week can reveal.
Shed search: JV plans to invest up to £100m in UK I&L sector
Salmon Property will be Westbrook’s development partner and Westbrook will provide the funding.
The JV, which intends to place a greater focus on ESG credentials as part of its strategy, plans to embark on a major speculative development drive across the UK and is targeting investment opportunities where it can add value.
It has secured its first acquisition, a four-acre site at Horley in the north Gatwick area, which it bought from Saga Group for around £10m and where it plans to build an 84,000 sq ft logistics warehouse.
The proposed project will have a GDV of at least £30m and is expected to be completed in the final quarter of next year.
The JV is also close to securing further sites.
Paul Stoodley, chief executive of Salmon Property, said: “The joint venture will see two experienced partners with strong track records in the logistics warehousing and multi-let industrial sector working together to create a substantial development pipeline. Having a single source of speculative funding puts us in a strong position in the current highly competitive development market.
“This is a great opportunity to continue focusing on prime speculative warehouse developments in our core areas. The supply/demand imbalance remains strong in these prime areas, and we see continued rental growth.”
Tudor Real Estate advised on the formation of the JV. Commenting on the deal, Rob Tudor, Managing Director of Tudor RE said;
“Its always good to bring two clients together, especially two businesses that have a very similar outlook on evaluating risk and investing in projects that are right for each particular location. I have no doubt that this Joint Venture will be very successful, and will deliver the Grade A quality product that both Salmon and Westbrook Partners are looking for”.
HODDESTON ACQUISITION FOR TAVIS HOUSE FOR £25M NEW WAREHOUSE DEVELOPMENT
Tavis House Properties, the specialist warehouse company run by Martin Smith, has acquired the former Xylem Water Solutions Unit in Hoddeston for £9.1 million, reflecting a site price of £2.26 million per acre.
The 4-acre site will be redeveloped to provide 80,000 sq ft of new warehouse units in two self-contained units of 45,000 sq ft and 21,500 sq ft and a further five smaller units totalling 13,500 sq ft. Rents are anticipated to be £13 psf. The scheme will have a GDV of approximately £25 million, when completed in mid-2023.
Commenting on the deal, Martin Smith said “I am delighted to have acquired this prime site, off market. Our current development pipeline is now in excess of (500,000 sq ft) and we are well on target to get (1 million sq ft) underway within the next 12 months. Hoddeston has a severe shortage of prime distribution units and I am very confident that the scheme will attract strong occupational interest”.
Tavis House were represented by M1 Agency and the vendor, Chancerygate was represented by Tudor Real Estate.
£5M BIRMINGHAM INDUSTRIAL ESTATE SALE
Chancerygate have sold Octagon Business Centre in Birmingham for £5m, represented by Tudor Real Estate. Savills represented the vendor, a HNW private client.
Octagon Business Centre is situated in Aston, 1.5 miles from Birmingham City Centre. This prime location also provides fast access to the M6 at Junction 6 (1.8 miles) and is well served by Snow Hill Railway Station just 1.5 miles distant and Birmingham Airport is also within 9 miles.
The scheme was developed by Chancerygate on a speculative basis in 2010 a modern 12 unit multi-let industrial/warehouse estate, totalling 33,175 sq ft GEA. Rents ranging from £5.50 - £9. The £5m purchase price reflects a NIY of 4.38%.
TUDOR REAL ESTATE MAKES SENIOR APPOINTMENTS AS BUSINESS EXPANDS
Tudor Real Estate has made two senior appointments as it continues to expand its business.
James Forrester has joined as a Senior Surveyor, specialising in office and industrial Investment agency and development funding, while Jade Stebbing has been appointed Finance Director.
James graduated from Oxford Brookes University in 2017 with a degree in Real Estate Management and was a commercial graduate at Savills in London. He is a qualified Chartered Surveyor and RICS Registered Valuer.
Jade is a Chartered Management Accountant with almost 15 years experience in finance and accounting across the UK, Europe and APAC. At Tudor Real Estate, she will be responsible for all aspects of the company’s finances, AML and Compliance, and will be fundamental in helping drive the growth of the business going forward.
Rob Tudor, who set up the business in March, said: “These appointments take our headcount to seven staff as we continue to expand our new business. We are in negotiations for two further people to join us and assist with our current sales program that is now over £100m, which from a standing start, is very pleasing”
FAMILY FOUNDATIONS
Rob Tudor, one of the most high-profile UK Investment Agents has left the business he set up 25 years ago to set up a new agency, Tudor Real Estate with his Daughter Abigail and Nephew James.
The new business will continue to concentrate on all aspects of investment agency, development funding and joint ventures.
After working at King Sturge and Hillier Parker in the late 1980s and early 1990’s, Tudor established the hugely successful Tudor Toone agency in 1993, becoming one of the country’s leading investment agencies over a 25-year period, concluding in excess of £20bn of transactions. High profile deals include the £1bn formation of the Great Capital Partnership, a Central London office joint venture between Capco and GPE, the £610m sale of Shell Mex House for Westbrook Partners and the £400m sale of Croxley Business Park on behalf of Columbia Threadneedle.
Abigail and James have recently completed Real Estate Degrees at Oxford Brookes and Reading University respectively. At TRE, Abigail will concentrate on Mixed Use, Student and Residential projects whilst James will specialise in Investment Agency and Development funding’s.
Commenting on the new business, Rob said “those people who know me, and remember my brother who is still sadly missed 16 years on, will recognise the significance to me of being able to work with both my daughter and nephew. This is something I’ve had in the back of my mind for a long time, and I’m looking forward to working with the next generation of Tudors and building up the new brand over the next few years”.
“The new business will concentrate on clients I’ve worked with for many years, and I’m excited about this new direction for Abigail, James and myself. The intention is to expand the size of our business significantly to ensure we have enough people to adequately service our clients’ requirements. In addition, we may well recruit a couple of people to run an agency team if this is a direction our clients want us to go down”.