Fund manager Managing Partners Limited (MPL), through its British Property Opportunities Fund, has taken a substantial stake in the Rotunda Building, a prime leisure destination in the heart of Kingston-upon-Thames in the UK. The leisure complex attracts over 2.8 million visitors per year. The investment provided the fund with a net initial yield of 7.5%.
Fund manager Managing Partners Limited (MPL), through its British Property Opportunities Fund, has taken a substantial stake in the Rotunda Building, a prime leisure destination in the heart of Kingston-upon-Thames in the UK. The leisure complex attracts over 2.8 million visitors per year. The investment provided the fund with a net initial yield of 7.5%.
British Property Opportunities Fund is looking to increase its exposure to commercial property. MPL said there are some very strong yields to be obtained in the sector and that many commercial properties are currently attractively priced for cash-rich funds and investors.
The fund is targeting an annual return of around 10% by investing in both residential and commercial property, including distressed portfolios, high-yield rental units, development opportunities, leasebacks and reversionary gains schemes.
Jeremy Leach, managing director of MPL, said: 'We believe that there are a number of attractive opportunities for us in the commercial property market and a good example of this is the Rotunda. Kingston-upon-Thames is an attractive area drawing from a catchment of nearly 800,000 people. The Rotunda is held freehold, and is fully let with 12 tenants providing a rental income of over £3.3 mln per year of which 80% is secured against 5A1 Dun & Bradstreet rated covenants. The majority of leases have in excess of 19 years remaining.'
