Accrue Capital, the real estate private equity house founded by Stephen Webster and John Slade, has made its first acquisition with the purchase of private property company Heathcroft Properties.

Accrue Capital, the real estate private equity house founded by Stephen Webster and John Slade, has made its first acquisition with the purchase of private property company Heathcroft Properties.

The acquisition of Heathcroft, which was established in 1994 but traces its origins back to the 1920s, comes with a £36 mln (EUR 42 mln) investment portfolio, comprising mainly retail and industrial properties. Included in the portfolio is a small residential investment estate and an interesting income stream from retail units within four major hospitals.

The diversified portfolio produces a net income in excess of £3 mln. The average length of lease is over 10 years and the properties are well located in good towns and cities throughout the UK. Tenants include Argos, W H Smith, Boots, Corals, Virgin, Iceland, Eat, the NHS and the Post Office.

Heathcroft's offices in Marlow will be retained and the existing management team brought under the Accrue umbrella.

Debt of £22.5 mln was arranged with the Corporate Real Estate Team at Lloyds TSB Corporate Markets. Equity was provided from within Accrue's own resources including its Exempt Unit Trust and additional funding obtained from Revcap.

Accrue Capital was advised by CB Richard Ellis, DTZ, Addleshaw Goddard and Thompson Taraz. Heathcroft was advised by Olswang and PKF.