Cerberus sharpens focus on UK business park market with new debt deal

Private investor Cerberus Capital Management has acquired the debt of Quorum Business Park in the UK city of Newcastle as part of a larger loan portfolio restructuring.

The deal, which has also seen the acquisition of the developer’s remaining interest in the Quorum properties, involves 10 of the 15 buildings at Quorum with 624,000 sq ft (58,000 m2) of office space. Terms were not disclosed.

Quorum is a 1 million sq ft office park that is already home to IBM, Tesco Bank, Convergys and Balfour Beatty. The park has potential for continued growth with a pipeline of over 300,000 sq ft of newly completed office space to let.

'This new investment from Cerberus is a huge boost to the Newcastle commercial property market and a real vote of confidence in Quorum,' said Fergus Trim, development director at Quorum.

The acquisition of Quorum increases Cerberus’s focus on the UK business park market as Cerberus also recently acquired a majority interest in Maxim Office Park near Glasgow.

Lee Millstein, senior managing director at Cerberus, said it 'was a complex transaction that required expertise in restructuring non-performing loans'. 'We are pleased to be making another investment that will further spur local economic development,' he added.

Arisaig Property Partners will act as asset manager at Quorum, bringing it and the Maxim park under the same management. Quorum Business Park includes almost 1,000,000 sq ft of new offices, shops, a restaurant, nursery, three tennis courts and a football pitch.