Invista sells Castle residential portfolio for EUR 115m

Invista Real Estate Investment Management has completed the sale of its entire interest in the Castle residential portfolio to Grainger for a gross sales price of £97.1 mln (EUR 115 mln), including £18.5 mln in cash. The transaction has been effected via the sale by Invista of 100% of the share capital of its directly-owned subsidiary company, HI Tricomm Holdings.

HI Tricomm indirectly owns a portfolio of 317 freehold houses in five separate locations in the south-west of England, comprising parts of larger residential estates built between 2001 and 2003 under the terms of a Private Finance Initiative project to provide dwellings for senior Ministry of Defence personnel. The portfolio is let under a long-term lease arrangement with the Secretary of State for Defence until 2028.

Upon expiry of the project, the Secretary of State for Defence has the option to purchase the sites (at fair market value), re-tender the project (at fair market value) or leave the sites in ownership of the owner who is then able to divest the properties in the open market.

The portfolio currently generates a net annual rental income after property expenses of £7.8 mln and will enhance Grainger's recurring profits. HI Tricomm is currently financed by a £69.1 mln senior debt facility provided by Bank of America which will be rolled over with the transaction and will expire in 2028.