Property deal roundup: Valad, Blackstone, Savills, BA Pension Fund, London & Stamford, Aviva

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  • Property deal roundup: Valad, Blackstone, Savills, BA Pension Fund, London & Stamford, Aviva

GLOBAL - Australia-based Valad Property Group's shareholders have approved the proposed AUD806m (€605m) takeover by two affiliates of US-based Blackstone Real Estate Advisors.

An application will now be made to the Supreme Court for approval - a hearing has been set for 11 August.

If the deal is approved, the final day of trading for Valad securities will be 12 August, and Valad security holders will receive $1.80 per security on 26 August.

Australia's Macquarie Bank floated Valad on the stock exchange in 2002. Since then, its shares have fallen from a high of $42.90 to just $1.80.

In other news, Savills has sold two London properties - 138 New Bond Street and 40-41 Old Bond Street - to private investors for a combined £28m (€32m) on behalf of British Airways Pension Fund.

138 Bond Street is let to Italian fashion house Missoni on a 15-year lease at £310,000 per annum for the 2,540 square foot property. An undisclosed UK investor bought the property for £9.5m, reflecting an initial yield of 3.08%.

40-41 Old Bond Street is let to French jewellers Cartier with eight years remaining on the lease. The current rent is £540,000 per annum for the 4,700 square foot property. An Irish investor acquired the property for £18.6m, reflecting an initial yield of 2.74%.

Meanwhile, London & Stamford Property has agreed to purchase a distribution unit in Harlow for £22.9m, reflecting a yield of 7.5%.

The property comprises a 273,115 square foot distribution warehouse located four miles from the M11 and seven miles from the M25.

The warehouse is leased to Tesco Stores, and the unexpired lease term for a further 12.5 years to Tesco Stores is guaranteed by the parent company.

The acquisition will be added to the existing South Eastern distribution assets held in a joint venture with Green Park Investments.

Once leverage is applied, the cash yield is expected to be 12.07%, and London & Stamford's equity commitment is expected to be £4.8m.

In another deal, Dorchester Ground Rent Management has signed its first institutional fund mandate with Aviva Investors worth an initial £50m and targeting a minimum of £250m over five years.
 
Under the deal, Dorchester will source residential ground rent investments for the Aviva Investors Ground Rent fund.
 
Dorchester Ground Rent was established in 2010 with EC Harris, the international built asset consultancy, as its backer and major shareholder. It aims to be the leading institutional investor in the ground rent sector.

Finally, growth investor Bridges Ventures and healthcare developers Castleoak have completed a first close of £32m in their Healthcare Property Fund.

The fund will have access to pre-let care home developments supplied by Casteloak, and an initial investment in three of these with a value of £25m has been agreed, with future transactions planned.

The fund aims to concentrate further on care homes for the elderly in the future, and now, with borrowings, has an initial investment capacity of more than £50m.

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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