Rockspring Property Investment Managers announced on Friday that it has exchanged on its first three acquisitions totalling £66 mln (EUR 74 mln) on behalf of its UK Value Fund. The transactions were in Tyne, London and Aberdeen.
Rockspring Property Investment Managers announced on Friday that it has exchanged on its first three acquisitions totalling £66 mln (EUR 74 mln) on behalf of its UK Value Fund. The transactions were in Tyne, London and Aberdeen.
The fund was created in 2009 to invest in commercial property, joint ventures and pooled/unitised property vehicles where Rockspring saw scope for near-term capital appreciation and income growth. The fund is expected to have its final close in the first half of 2010.
Rockspring said it acquired The Precinct in Blaydon on Tyne (near Newcastle upon Tyne) from UK Land for £10.1 mln. The shopping centre has existing planning consent for a 6,000-m2 supermarket extension. The property currently totals 8,900 m2 and includes 40 retail units and four small offices suites.
The centre is let to a mixture of major brands and local tenants and is anchored by the Co-operative, Lloyds TSB Bank, McDonalds, B&M and Boots. Rockspring is currently in discussions with potential tenants for the extended supermarket site, with a view to commencing construction on the extension, as well as undertaking a modernisation programme of the existing centre, later this year. DTZ advised Rockspring. Manse will act as asset and development managers.
The acquisition of 65 Southwark Street, London SE1 from Deutsche Bank, has exchanged for £8.6 mln. Rockspring is to undertake a substantial refurbishment and extend the building with the aim to release it to the occupational market in 2012. Rockspring is partnering Moorevale who will act as development managers. Strutt and Parker advised Rockspring, Deutsche Bank was advised by Jones Lang LaSalle.
In addition, the fund has recently completed the purchase of The Mall Shopping Centre, Aberdeen from the Mall Fund for a price of £47.4 mln, reflecting an initial yield of 8.25%. The shopping centre comprises 17,650 m2 and is anchored by Debenhams, Argos and HMV. Montagu Evans acted for Rockspring, CBRE for The Mall.