A group of family offices from the Middle East who are investors in private equity firm Investra Investments have acquired Riverside Business Park in Stoke UK for $19 million.
With offices in Dubai and London, Investra is a private equity investor with over $1.58 billion in cumulative transactions, investing in the UK and US. Last year was the first year of trading for Investra Capital in Dubai and so far it has advised in excess of $110 million.
Investra Investments is listed in the Middle East Investors Directory with the code SFE12.
More details follows:
Investra Capital, on behalf of Investra Investments LLC and family offices in the Gulf, has just acquired the Riverside Business Park in Stoke, from the Topland Group, for £12.5 million reflecting a net initial yield of 9.1%. The Property comprises three separate buildings totalling 83,079 sq ft, all of which are let on three co-terminus leases to Michelin Tyre Plc for a further 10.25 years.
Martin Waller, Managing Director of Investra Capital, said: "This Investment opportunity offers our clients secure income from an outstanding tenant combined with an attractive yield profile. We are predominantly seeking value in the regions, and felt that the asset showed better value when compared with other similar assets we have seen in the market. Furthermore, we believe the asset has both medium and long term asset management potential."
The deal coincides with the completion of a further four industrial assets totalling £8.6 million. Locations of these deals include Telford, Norwich, Peterlee and Newcastle-Under-Lyme.
Nick Franks from Investra Capital commented: "Each of these assets has its own merits. They are all fundamentally good assets in good micro locations. The Telford asset, let to Chequer Foods, provides 13 years of income in a strong manufacturing location. The remaining three assets have been packaged as a portfolio, with a blended yield of 9.5%, have a blended AWULT of 4.3 years, and offer both short and medium term asset management opportunities."
These transactions mean that in Investra Capital's first year it has advised on in excess of £70 million. Other notable transactions included the acquisition of the Epwin Portfolio for £19.7m which reflected a net initial yield of 9.76% and the acquisition of a portfolio of seven care homes let to Mencap from Prestbury, for £17.1 million.
Parallel to the investment side of the business, Investra Development was formed in May 2014. Nick Hornby has joined from Northridge Capital and has come in to lead the development side. The business is currently focusing on hotel and student accommodation development and is already advising on two on-site developments, including a 110 bed hotel in Ealing, let to Ibis for 20 years and a 150 bed student accommodation site in Bournemouth. The combined GDV of these assets is approximately £30 million.
In the same period, Gerald Bishop, joined Investra Capital from M&G Real Estate's fund management team where he worked on their main life fund in the retail sector and on a successful repositioning strategy of three national, multi-sector, institutional funds. Prior to that he was also with their transaction management department, dealing across all client funds, and with the asset management team focusing on their industrial portfolio. He joined Investra in 2014 and works closely with both the investment and development sides of the business, enhancing their investment operations and asset management capabilities. Liz Onipede has joined from Estates & Management after three and a half years.
Zaid Randeree, CEO of Investra Investments Ltd (Dubai) added: "2014 was a good first year of trading for Investra Capital and in this time we believe that we have found our clients value in a challenging market. There is further capital to deploy in 2015 and whilst we have identified a number of sectors and specific opportunities, we will remain deal led."
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