Catalyst Capital has acquired a mixed UK portfolio for £51.5, a yield of 9%.
The European real estate investment and asset management firm’s second European real estate fund, Catalyst European Property Fund II, bought the Meteor portfolio, which comprises 23 properties (12 retail, seven industrial, two office and two mixed-use), totalling 794,000 sq ft. The seller is understood to be Columbia Threadneedle.
The portfolio’s 88 tenants generate rental income of £5.4m pa. The vacancy rate is 7.2% and the weighted average unexpired lease term is 2.5 years to break and four years to expiry.
Guy Wilson, a partner at Catalyst Capital, said: “The portfolio offers a combination of high income return and the ability to add value though asset management.”
John Rodgers, partner at Gerald Eve, which advised the seller, said: “The disposal was part of a growing trend of real estate vehicles looking to prune their tail, creating a more efficient residual fund structure.”
Catalyst was advised by JLL.
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