Telereal Trillium has completed its deal to buy the Flagstaff portfolio from Lloyds Banking Group.
The parties would not confirm the final amount paid for the group of 35 secondary and tertiary assets, but it is understood to be less than the £47m which was agreed when the portfolio went under offer in July.
The cash deal to the subsidiary of the William Pears Group reflects a yield of more than 10%.
The marketing price for the original 38-strong national portfolio was £68m at a yield of 9%.
It was the first property portfolio aggregation of its kind where the properties are in different receiverships under joint LPA Receivers, and was keenly watched by the market as a test of investor appetite for this type of stock.
Jones Lang LaSalle advised on the process, and was appointed as an overarching receiver and sales agent.
Telereal Trillium chief executive Graham Edwards (pictured) said: “This is the sort of widely-spread, national, mixed-use portfolio that is a great fit for our excellent asset management skills. We have been able to draw upon our strong cash reserves to close this transaction, despite difficult market conditions, and continue to look for opportunities to deploy capital in this sector.”
David Emburey, lead director of portfolio investment at JLL, said: “To have transacted Flagstaff in such difficult trading conditions, while also being the first portfolio to be structured in this way, demonstrates that the deal has been an absolute success. We are delighted this major transaction has concluded and will, in our opinion, lead to similar structures going forward.”
Andrew Wilson, head of solutions, corporate real estate business support unit at Lloyds, said: “The Flagstaff sale is the first of its kind, and demonstrates our continued progress to deleverage through the use of an innovative and practical insolvency process. This structure affords us the ability to sell future portfolios to capture investor appetite.”
In conjunction with Lloyds Banking Group, Ashurst and Jones Lang LaSalle devised the sale structure for the Flagstaff portfolio, and advised on the execution of the transaction. Telereal Trillium was advised by CBRE.
bridget.oconnell@estatesgazette.com
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