Evans Randall expands portfolio of its £1bn opportunity fund

UK investment banking and private equity group Evans Randall has made a second and third acquisition for its £1bn (EUR 1.3 bn) opportunity fund launched in January. The fund, set up to take advantage of a short-term yield shift in the distressed property markets, made its first purchase in early January with the acquisition of Condor House at St Paul's Churchyard in London for £115 mln.

Evans Randall said the fund has now entered London's West End market with the purchase of 10 Old Burlington Street in Mayfair and invested another £127.5 mln to buy Commerzbank's headquarters on 60 Gracechurch Street in the City of London. The German bank's head office was held by New Star Asset Management, which bought it at end 2006 for circa £146 mln. The landmark building comprising 120,000 sq ft (11,148 m2) of offices and 4,500 sq ft of retail space, is currently securely let until September 2018 to Commerzbank and Boots the Chemist. The deal reflects a net initial yield of circa 5.7%.

The company acquired 10 Old Burlingon Street in Mayfair for £48.5 mln from Standard Life. The 40,500 sq ft building is occupied by a number of high- quality businesses including Goodman, MKM Longboat Capital Advisors, Davidson Kempner European Partners and Nevsky Capital. The purchase price reflects a net initial yield of 5.7%.

Michael Evans, CEO of Evans Randall, said: 'We are now in an extremely strong position to take full advantage of the current market to acquire top-quality buildings at attractive prices. We have completed all three individual transactions within a tight timescale of 10 days - start to finish'. He added: 'The fund will remain predominantly UK focused as we believe that this is where the best investments are. This said, we will continue to monitor the overseas markets and our strategy gives us the flexibility to respond rapidly to movements abroad.'

Evans Randall was advised on both acquisitions by its retained agent, CB Richard Ellis.