30 October 2015
Orchard Street acquires portfolio of seven prime UK commercial properties for £149.65 million
Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of The Alhambra Portfolio, a portfolio of seven prime commercial assets, for £149.65 million, reflecting a net initial yield of 5.5%. Orchard Street acquired the portfolio at property level on behalf of a pension fund client from a private investor.
Six of the seven assets are in the South East of England, while five are freehold. Providing 805,519 sq ft in total, the portfolio comprises a Greater London Tesco distribution facility, five office buildings and a Sainsbury’s convenience store and petrol filling station. All of the properties are single let to tenants with strong covenants on a WAULT of 17.4 years.
The portfolio comprises the following assets:
- Beam Reach Business Park in Rainham, Essex: a 572,837 sqft distribution centre, occupied by Tesco;
- Tamblin Way in Hatfield, Hertfordshire: 88,114 sqft of freehold office space, leased by Affinity Water Limited;
- Kitemark Court in Milton Keynes, Buckinghamshire: a 57,423 sqft freehold office development, leased by The British Standards Institution;
- 1500 Eureka Park in Ashford, Kent: 35,759 sqft of office space, let to Smiths Medical International;
- Saxon House in Peterborough, Cambridgeshire: 29,549 sqft freehold offices, occupied by BGL Group;
- One Curo Park in St Albans, Hertfordshire: 17,273 sqft freehold office development, rented to John Sisk & Son Ltd;
- Sainsbury’s filling station & convenience store in Horley, Surrey: a freehold development on a 0.9 acre site.
Gary Felce, Partner at Orchard Street, commented:
“This portfolio acquisition presents a rare and exciting opportunity for Orchard Street to secure a diversified mix of prime commercial properties in highly sought-after areas of the UK’s South East and East Midlands. All assets benefit from excellent fundamentals and exceptional covenant strength, whilst presenting attractive prospects for future income growth.”