Rockspring spends £40m on two UK assets

  Rockspring Property Investment Managers, on behalf of the Rockspring UK Value Fund and the Rockspring Hanover Property Unit Trust, has bought two properties, totalling almost £40m, in Milton Keynes and Merthyr Tydfil, Wales.   On behalf of RUKV, Rockspring has bought the freehold interest in Exchange House in Milton Keynes for £15.8m, reflecting a net initial yield of 12%, from CBRE Investors.   The office and retail property comprises 121,536 sq ft of offices and 27,085 sq ft of shops.   The deal was Rockspring’s second 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 has bought St Tydfil Square Shopping Centre, Merthyr Tydfil, Wales, for £24m, 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 around 187,000 sq ft of shops, arranged as 49 retail units as well as an indoor market, let to tenants including Wilkinsons, Game, Argos, Clintons, New Look and Boots.   King Sturge acted for Rockspring and Savills acted for Cordea Savills and Diageo.   Hugh Elrington, head of UK transactions for Rockspring, said:  “Both of these properties appealed to us as they offer good asset management opportunities, for example through improving the tenant profiles or undertaking refurbishment works, while benefiting from stable income.   “In addition, we are pleased to team up again with First Alliance Properties in Milton Keynes, who are able to offer a unique local market perspective.   “We will continue to look for further opportunities either directly, or where we can benefit from the expertise of a local partner.”   paul.norman@estatesgazette.com