Clearbell rings up €289m of UK portfolio deals

Clearbell Capital, a private equity real estate business, has acquired two mixed portfolios in the UK for a total of £204 mln (€289 mln).

The largest of the two transactions involved the acquisition of the 29-asset, mixed-use Amber portfolio from Aberdeen Asset Management. The investment volume of £153 mln reflects a net initial yield of 8%.

A fund managed by Clearbell was partnered in the deal by Franklin Templeton Real Asset Advisors, acting on behalf of one if its clients, and one other co-investment partner.

The portfolio, which totals 186,000 m2 in size, is composed of retail assets (38%), industrial assets (42%) and office space (20%). Over half of the assets are located in the south of England. The portfolio generates £13.2 mln in annual rent and has a weighted average unexpired lease term (WAULT) to first break of 4.5 years. The largest tenants include B&Q, Travis Perkins, Sports Direct.com, LG Electronics and Vodafone.

The business plan calls for the leasing up of 4.5% of vacant space, said Clearbell partner Rob West. 'This portfolio not only has an existing strong cash income, but also offers the opportunity to apply our asset management skills in the letting of nearly 100,000 sq ft (9,290 m2) and the redevelopment of key sites. Given the large equity requirement, we are delighted that we were able to allow two existing investors to co-invest alongside the fund.'

Clearbell were advised by Brown Cooper Marples. Aberdeen was represented by Knight Frank.

Industrial
Separately, Clearbell announced the acquisition of the Stephenson portfolio which comprises 14 business and industrial real estate assets located in 'fast-growing UK regions'.

The portfolio - which is being renamed as Polaris - is being acquired for almost £51 mln from Stirling Investments. The net initial yield is 11.2%.

The portfolio is composed of 10% office assets, 67% industrial assets and 24% of distribution warehousing. It has 23 tenants on with a total rental of £6 mln. The assets are located in the UK’s regions, with one asset in the south and the rest spread across the north west, north east and Yorkshire. The largest tenants include Silentnight, Jeyes, Garnett Dickinson and DavyMarkham.

'With the acquisition of the Polaris portfolio, we are increasing our industrial exposure at an attractive initial yield which is also driving cash on cash returns,' West said.

Clearbell was advised by Deloitte.