European property investor Catalyst Capital has acquired a portfolio of commercial assets in the UK for £51.5 mln (€60 mln), known as the Meteor portfolio.
The deal, made on behalf of Catalyst’s second European real estate fund, Catalyst European Property Fund II (CEPF II), represents a net initial yield of around 9%.
'We are delighted to have completed the purchase of this high-yielding portfolio. The portfolio offers a combination of high income return and the ability to add value though asset management. Our cross-sector asset management capabilities mean that we are well suited to purchasing and running portfolios of this nature,' commented Guy Wilson (pictured), a partner of Catalyst Capital.
The portfolio comprises 23 properties (12 retail, seven industrial, two office and two mixed-use), totalling 794,000 ft2 and spread across the UK. There are 88 tenants, producing gross annual rental income of £5.44 mln. The vacancy rate is 7.2% and the weighted average unexpired lease term is 2.5 years to break and 4.0 years to expiry.
Catalyst was advised by JLL and the vendor by Gerald Eve.
'The Meteor portfolio sale generated considerable purchaser interest, demonstrating the depth of investor demand for regionally-located granular assets. The disposal was part of a growing trend of real estate vehicles looking to prune their tail, creating a more efficient residual fund structure and aligning the portfolio with the wider strategy,' said John Rodgers, partner at Gerald Eve.
Catalyst announced in June the first close of CEPF II, a real estate fund targeting €1 bn of investments. Catalyst has already acquired around €680 mln of real estate across Europe for CEPF II. Among the transactions are the Regatta and Eva portfolios, which total 34 properties, in the UK, Project 10, a €200 mln German office and retail portfolio, and three high-quality office buildings in established business districts of Paris.
