Rockspring acquires EUR 44m of property in UK

Rockspring Property Investment Managers has announced that it has acquired two properties in Milton Keynes in England and Merthyr Tydfil, Wales. The acquisitions with a total investment volume of almost £40 mln (EUR 44 mln) were carried out on behalf of the Rockspring UK Value Fund (RUKV) and the Rockspring Hanover Property Unit Trust (RHPUT).

In Milton Keynes, Rockspring, acting for RUKV, acquired the freehold interest in Exchange House for £15.8 mln, reflecting a net initial yield of 12% from CBRE Investors. The office and retail property comprises 11,200 m² of offices and 2,500 m² of retail space. This was Rockspring's second acquisition in Milton Keynes with its joint venture partners, First Alliance Properties. The purchaser was represented by John Miles and Co and Griffith Eccles acted for the vendor.

On behalf of RHPUT, Rockspring acquired the freehold interest in St. Tydfil Square Shopping Centre, Merthyr Tydfil, Wales for £24 mln, from Cordea Savills on behalf of Diageo Pension Trust, reflecting a net initial yield in excess of 9.25%. The centre comprises an open shopping centre and provides approximately 17,400 m² of retail space, arranged as 49 retail units as well as an indoor market. The tenants include Wilkinsons, Game, Argos, Clintons, New Look and Boots.

RHPUT is looking to increase its exposure to the retail sector and the property represents the opportunity to acquire a shopping centre with a low vacancy rate and strong income at an attractive yield, Rockspring said.

King Sturge acted for Rockspring and Savills acted for Cordea Savills and Diageo.