Remake has made an opportunistic acquisition in London on behalf of its Remake Live SCPI for £34 mln (€41 mln), reflecting an immediate net property yield of 7%.
The building is located at 100 Middlesex Street, in a district on the border between the City (London's financial district) and the more creative and cultural area of Spitalfields. It is approximately 200 metres from Liverpool Street Station, the busiest railway station in the UK following the opening of the Elizabeth line, and close to 6 of London's main underground lines.
The acquisition comprises full ownership of a 5,900 m2 building, built in late 2009 and fully let under triple-net leases with an average firm term of 5 years to a school (87% of the floor space) and 3 shops at the foot of the building. The property is home to Into London World Education, a provider of university preparation programmes for international students.
Commenting on the acquisition, Julien Lamy, Remake's investment director, said: 'This acquisition reinforces our tactical exposure to the UK market, which we at Remake believe is one of the markets that could rebound most strongly from an upcoming rate cut cycle. This acquisition, made at a competitive metric value of €6,900 per m2, could therefore generate capital gain in the future while providing an interesting NIY given its qualitative location.'
Richard Stewart, partner European Investment, Knight Frank commented: 'The acquisition marks the second purchase for Remake in this location having acquired Spitalfields House next door to 100 Middlesex Street earlier this year.'
Remake was advised in this transaction by Knight Frank and Herbert Smith Freehills. The seller was advised by Savills and Hogan Lovells.
