Lothbury, an independent investment manager of property unit trusts, has carried out three acquisitions on behalf of a UK pension fund.
Lothbury, an independent investment manager of property unit trusts, has carried out three acquisitions on behalf of a UK pension fund.
The three off-market acquisitions totalling nearly £110 mln (€129 mln) comprise the freehold of the Sainsbury’s supermarket in North Cheam, London and two student accommodation assets in London and Glasgow.
The Sainsbury’s supermarket in North Cheam was acquired in a deal worth £80 mln from a private investor. At 10,200 m2, the freehold property is one of Sainsbury’s larger food stores and comprises principally retail space with in excess of 25 years of a 30-year lease remaining. The store was extended and redeveloped in 2007 and has a decked car park and petrol station on site. It is the dominant store within its primary catchment.
The London student accommodation is the newly developed Peckham Road Buildings let to the University of the Arts in Camberwell. The vendor was Alumno Developments.
The 155-bed space accommodation was purchased for £15.5 mln with a 35-year lease to the university. The centre comprises student accommodation in four buildings, three of which are historic Grade II listed and one is a newly constructed wing.
The Glasgow property is a forward-funding purchase at 235-241 Dumbarton Road, with an end value of £13.7 mln. The vendor, Alumno Developments, will develop a purpose-built and designed 174-bedroom student accommodation block with a retail unit on the ground floor.
The building will be let to Derwent Housing Association, a nationwide housing association that operates a student accommodation arm, on a 21-year lease and will mainly serve students at the University of Glasgow. Construction is under way, with completion in time for the beginning of the 2014/15 academic year.
Lothbury was advised by Cushman & Wakefield on the Sainsbury’s acquisition and by Lawson & Partners on both student accommodation acquisitions.
Lothbury was formed in June 2010 following a management buyout of the KBC Asset Management (UK) business.
