Patrizia's Rockspring Property Investment Managers platform has invested £54 mln (€61.5 mln) across three individual transactions in the UK, comprising two reversionary office assets in London and a Holiday Inn hotel in York City.
The properties have been acquired at a combined net initial yield of just under 5%.
In London, Rockspring has purchased Mott MacDonald House, a 64,000 sq ft (6,000 m2) office property in Croydon, for £21.2 mln from Aviva Investors. Arranged over ground and six upper floors, together with 31 on-site car parking spaces, the asset is fully let to global management, engineering and development consultancy Mott MacDonald with a 6.7 year weighted average unexpired lease term to expiry.
The second office asset is the Bath and Cayton building, which is less than a five-minute walk from Old Street Underground Station and has been acquired from City, University of London for £17.3 mln. It is a 23,158 sq ft warehouse style building, with a basement, ground and five upper floors, that is currently fully let to Moorfields Eye Hospital NHS Foundation Trust.
Finally, Rockspring has acquired a 148-bed Holiday Inn hotel in York City Centre for £15 mln for its outperforming Rockspring Hanover PUT from Quidnet Capital and Colony North Star. The asset is let on a long 50 plus, FRI (full repair and insurance) lease to hotel operator Kew Green.
'These transactions demonstrate our highly selective approach to stock picking, which is underpinned by in depth research on the fundamentals of each asset,' said Jamie Younger, head of UK transactions at Rockspring. 'Each of the acquisitions is located in performing locations with income growth potential, either through asset management or performance linked, long-term leases. With a healthy pipeline of further acquisitions in the UK, where we believe there is still value to be found, we look forward to announcing further transactions over the short to medium term.'
Rockspring was advised by Coldwell Banker Commercial. The vendor, City, University of London was represented by Gerald Eve.