Singapore fund buys €315m UK regional office portfolio from Telereal Trillium

The Elite UK Commercial Fund managed by Singapore investor Elite Partners Capital has completed the purchase of the Hayhill portfolio of UK regional offices from Telereal Trillium for a total of £282 mln (€315 mln).

The 2.6 million sq ft (241,500 m2) portfolio has a combined annual rent of over £23 mln and comprises a UK-wide portfolio of 97 regional offices, let to the Department for Work and Pensions (DWP) on new, 10-year FRI leases, commencing on 1 April 2018.

The properties, 85% of which are located in town centre locations, are let at newly agreed market rents, subject to CPI-linked rent reviews.

The sale of the Hayhill Portfolio represents the second major transaction Telereal Trillium has completed in recent weeks, following its £1.46 bn acquisition of Network Rail’s commercial estate in partnership with Blackstone Property Partners.

Telereal Trillium said in a statement that it will look to invest the equity released by the Hayhill sale in the ongoing rebalancing of its portfolio, as the company continues to invest across the UK in the office, industrial, residential development, and strategic land sectors.

Graham Edwards, executive chairman at Telereal Trillium, said: 'The high level of interest in this well diversified portfolio from both UK and global buyers is a positive sign for the UK property market, and testament to the quality of the covenant strength on offer.'

Victor Song, managing director at Elite Partners Capital added: 'We are very pleased with the acquisition of the 97 freehold commercial assets that are let on long leases to the undoubted covenant of the UK Government, delivering a strong and sustainable yield. We look forward to acquiring more of such assets to grow the portfolio.'

CBRE and Reed Smith acted for Telereal Trillium. Goldenberg Real Estate, Eversheds Sutherland, and EY advised Elite.


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