A joint venture between Stainton and a group of Middle Eastern investors has bought Chapel Quarter in Nottingham for £20m.
The deal for the 145,000 sq ft mixed-use island scheme in the city centre, which was bought from Royal London Asset Management, reflects a yield of 8.75%.
The property comprises four floors of offices, six prime retail units and a 120-bedrom Holiday Inn Express hotel. It is 91% let to nine tenants, including Thomson Reuters, Barclays and Global Radio, with an average remaining lease length of 14 years.
The deal was financed by Deutsche Postbank AG.
Stainton has been appointed asset manager to the jv and will oversee the planned upgrading of the reception area, common parts and exterior of the building.
Stainton Group chief investment officer James Longden said: “We spent many months working with the vendor Royal London Asset Management to ensure the successful completion.
“We are very pleased to have made this investment in the Nottingham market and we strongly believe in the fundamentals that Nottingham has to offer as a location.
“We look forward to working with the local, national and international tenants in improving and consolidating Chapel Quarter’s position and image in the centre of Nottingham.”
David Swan, managing director of WW Advisors, which advised the jv, said: “We are delighted to add Chapel Quarter to the rapidly growing list of properties we have advised as we build our client’s portfolio.
“Our strategy has seen the recent acquisition of three quality assets, each of which will deliver a good return, require low capital expenditure, and with active asset management, we believe will perform very well.
“We continue to seek more opportunities, both on and off market, where we can secure assets that fit our model and work with local partners to add value for our client.”
RLAM was advised by Allsop.
bridget.o’connell@estatesgazette.com
