Raglan Properties is raising £31.2m from the sale of eight industrial properties to Norwich Union Life and Pensions.
The properties – seven wholly owned and one a joint venture with the Hong Kong based Fu family – have a total book value of £31.8m and sale price of £35.69m. They have been actively managed by Raglan since their purchase, some as part of the LetInvest portfolio in 1994, at a yield of over 11%. The rent roll has increased by £500,000 following new lettings.
“These sales reflect Raglan’s strategy of buying high yielding industrial properties and working them to create added value, suitable for sale to institutional purchasers,” explains Raglan’s chief executive, Alan Fosler.
Raglan’s £28m share of the net proceeds will be ploughed back into high yielding property investments, along with the £14m already in its cash coffers.
Raglan’s investment manager Rupert Boissier says the company is now looking at high yielding multi-let provincial offices and high street shops to which it can add value, as industrials are becoming increasingly expensive.
The properties sold are seven wholly-owned industrial estates in Bradford, Cardiff, Hinckley, Iver, Newark and Witney with an aggregate book value of £26m which show a yield of 8.88% at the £30m purchase price. The eighth joint venture property is in Harlow and provides NU with an initial yield of 10.45% at the purchase price of £5.5m.
Anthony Green & Spencer acted for Raglan, while King Sturge and Lewis & Partners represented NU.
EGi News 13/03/98
