TBI, the Cardiff-based property group which bought the operations of Markheath from the receiver last year, has expanded again with the purchase of 11 properties totalling £24.1m.
The vendor is Peter Thomas, brother of TBI’s chairman Stanley Thomas, and the man who made millions from the Peter’s Savoury Pies business. The properties were held by three companies – Pacific Properties, Caspian Properties and Fitissue – which have been sold for a mixture of cash and shares. TBI is funding the deal to the tune of £11m, with the issue of 27.9m new ordinary shares at 40p each, and will be taking on £12.9m of related bank debt.
The mainly retail properties, which yield 8.4%, produce annual rental income of £2m. Retail warehouses in Sutton in Ashfield and Caerphilly and supermarkets in Castle Bromwich and Rugby are included in the portfolio. Tenants include Texas Homecare, Great Mills, Aldi and KwikSave. Some 47% of the leases have between 20 and 25 years to run, with a further 41% of between 16 and 19 years.
TBI’s portfolio has now been rebalanced in favour of the retail sector, now 20% from 9% previously. Industrial is now 20% (22%) and offices 42% (46%). Development sites account for the remaining 18% (23%).
The deal increases TBI’s net assets to £57.2m. At the same time, TBI has arranged a new £17.5m banking facility on more advantageous terms than existing debt.
TBI has also announced that Tim Simon, former chairman of Savills’ commercial division and currently an independent adviser to Alexander Pearce Group, G A Dunn & Co, Europolis Invest, Cambridge University and the Thorm EMI Pension Fund trustees has been appointed as a non-executive director.
