Rockspring Property Investment Managers, the London-based real estate manager, has sold a London office asset to AXA Real Estate for £70 million (€96 million; $104 million) and at the same time made a £47.5 million warehouse investment in Ipswich, also in the UK.
On behalf of a separate account, Rockspring sold 63 St Mary Axe, an 83,000 square foot office which it acquired back in 2011. Together with London-based property and asset management firm Moorevale, conducted a full refurbishment program, adding two new floors and enhancing the existing facilities.
The firm has also acquired Euro Retail Park in Ipswich from London-based property management company Helix Property Advisors for £47.5 million, reflecting a net initial yield of 7 percent. The purchase was made on behalf of a separate account mandate.
The 210,534 square foot retail warehouse park is located south east of the town centre in Ipswich. Tenants at Euro Retail Park include B&Q, B&M, Sports Direct, Halfords, Dreams, ScS, Wren Kitchens, Harveys, Carpetright, Pizza Hut and Burger King, with a weighted average unexpired lease term of 10.5 years.
“Euro Retail Park fits perfectly with this Fund’s core-plus, value-add strategy. It is a high quality, low risk retail park that will not only generate strong income returns but offers value growth potential through a pro-active asset management strategy,” commented Phil Sturdy, European director at Rockspring.
On the 63 St Mary Axe exit Rockspring was advised by Knight Frank. On the Euro Retail Park investment Rockspring was advised by Edgerley Simpson Howe whilst CBRE acted for Helix Property Advisers.