Wainbridge has completed the acquisition of three office assets in central London, Croydon and Bristol, for a total of £39m. The properties were acquired on behalf of its real estate fund, Wainbridge Global Opportunities London.
The London properties at Chenies Crescent on Chenies Street, WC1, were bought from a consortium of private investors for £24.5m, representing a net initial yield of 6%. The total 60,670 sq ft of office buildings are fully let to advertising and marketing group Omnicom and its subsidiaries until 2016.
Wainbridge, advised by Michael Elliot, will carry out a full refurbishment programme, costing around £4.5m. Santander Bank provided the senior debt for the acquisition and a capex facility for the refurbishment works.
In Croydon, Wainbridge bought Sunley House – a 112,330 sq ft, multilet office building – in partnership with a private investor. The 12-storey block was bought out of receivership for £11m, reflecting an initial yield of 10.7%, and a low capital value of £98 per sq ft. Tenants include Zurich Insurance and the Secretary of State for Communities and Local Government.
In Bristol, Wainbridge bought Froomsgate out of receivership in partnership with a private investor as part of the linked purchase with Sunley House. Froomsgate is a 91,860 sq ft office building, which was bought for £3m, representing a net initial yield of 25%. Tenants include Avon & Somerset Police Authority and the Crown Prosecution Service.
Cushman & Wakefield acted on behalf of the vendor on the Bristol and Croydon deals.
james.buckley@estatesgazette.com
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