Orchard Street Investment Management has acquired a seven-asset real estate portfolio focused on the southeast of England for just under £150 mln (€208 mln).
Orchard Street Investment Management has acquired a seven-asset real estate portfolio focused on the southeast of England for just under £150 mln (€208 mln).
The investment volume for the Alhambra Portfolio reflects a net initial yield of 5.5%.
London-based Orchard Street acquired the portfolio on behalf of a pension fund client from a private investor.
The Alhambra Portfolio comprises seven assets, six of which are situated in the southeast of England. Providing almost 75,000 m2 of total space, the portfolio comprises a Greater London Tesco distribution facility, five office buildings and a Sainsbury’s convenience store and petrol filling station. All of the properties are let to a single tenants with a weighted average unexpired lease term of 17.4 years.
'This portfolio acquisition presents a rare and exciting opportunity for Orchard Street to secure a diversified mix of prime commercial properties in highly sought-after areas of the UK’s South East and East Midlands, said Orchard Street partner Gary Felce. 'All assets benefit from excellent fundamentals and exceptional covenant strength, whilst presenting attractive prospects for future income growth.'
