Riverside Capital has reached practical completion on its Leeds retail investment: two new-build properties, which were forward funded in April last year.
The properties are let to Aldi supermarket, Pure Gym and discount retailer, Poundworld on 20, 15 and 12 year leases respectively.
Aldi has already begun trading, with Pure Gym and Poundworld now completing their fit-outs before commencing trade by the end of the month.
A four year loan on the investment has been secured with RBS at an interest rate of 3.22%, exceeding business plan projections.
Riverside Capital has exchanged contracts to purchase “Old Street Works” on City Road, London EC1.
The property investment company will raise £16.2m of equity from its investor base, together with senior debt provided by Lloyds Banking Group to complete the transaction.
The ground and lower ground floors are let to retail tenants including Nando’s and Bodean’s restaurants, with the four upper floors being office accommodation currently 50% let to a range of tenants, mostly within the Technology, Media and Telecoms (TMT) sector.
The term of the investment will be approximately 3.25 years from completion. Within this time-frame, Riverside Capital aims to deliver its business plan of raising rents from existing tenants at rent review, and letting vacant space.
“Tech City” presents an exciting opportunity for investors looking to participate in the London market, having currently one of the lowest office vacancy rates of any sub-market in London and a robust growth story: the TMT sector now employs more people in London than the finance industry and Old Street Works’ postcode, EC1V, houses London’s highest concentration of tech companies.
Dominic Wright, Group Chief Executive at Riverside Capital, commented: "The acquisition of Old Street Works is our first investment in London for several years and we are pleased to be able to give our investors access to one of the most exciting locations in this great city."
Riverside Capital investors who wish to know more about the opportunity should contact a member of the team.
Jason Roy, England opening batsman and Riverside Capital ambassador, has been named as one of only three England-qualified players to play in the new South African T20 tournament.
Along with England captain Eoin Morgan and former England star Kevin Pietersen, Jason is one of eight ‘marquee’ internationals who have signed up to enter a draft for the franchise, scheduled to take place in November.
The trio will play in the tournament for the next two years alongside other cricket stars from around the world: Dwayne Bravo, Kieron Pollard and Chris Gale from the West Indies, Lasith Malinga from Sri Lanka and former New Zealand captain Brendon McCullum.
Jason is currently involved in the Indian Premier League, where he is playing with the Gujarat Lions. After his return, he faces a busy summer as he joins his England teammates to take on South Africa in the One Day Series, and then compete for the ICC Champions Trophy in June.
Riverside Capital has completed the sale of its’ stake in Best Western Cresta Court Hotel, Altrincham. The sale was completed by way of an MBO, backed by Vine Hotels Ltd, the hotel operating company owned by Greg Dyke.
Having originally acquired 80% of the business in February 2013, the 140-bedroom property has been significantly upgraded during the four year hold period.
As a result, investors have doubled their money with the sale completing exactly in line with the original business blueprint. Comparing the MBO to an open market sale, the price achieved would equate to £8.0 million.
Ashley Wilcox, Director at Riverside Capital said: “Cresta Court has been a fantastic project to be a part of. Doubling our investors’ money and turning the fortunes of the well regarded hotel has been incredibly satisfying.”
Dominic Wright, Group Chief Executive at Riverside Capital said: “Commercial property continues to be a highly attractive asset class for private investors – especially well-priced, well situated assets like this with a major brand name attached.
"The impressive returns demonstrate why commercial property can play an important role within portfolios, and underline the value of strategic asset management.”
Riverside Capital has sold a logistics investment in Northamptonshire in an off market deal for £8.20m, reflecting a net initial yield of 4.85%.
The freehold industrial unit in Warth Park, Raunds totals 42,528 sq. ft. and is let to DPD UK Ltd until 2028.
The property was acquired in September 2013 by way of a forward commitment at 7.29% net initial yield. The sale has allowed Riverside Capital to achieve stellar returns for investors 18 months’ ahead of schedule.
Ashley Wilcox, Director at Riverside Capital said: “The logistics sub-sector continues to grow and we are delighted to have traded a 16 year income stream at such a sharp yield.”
Dominic Wright, Group Chief Executive at Riverside Capital said: “Our strategy since 2012 has been to buy Prime property let on long leases to strong covenants. We are proud to have returned investors an IRR of 17.34%, and an equity multiple of 1.7 on this extremely low risk investment within 3.5 years.”
LSH acted for the purchaser and Levy LLP acted for Riverside Capital Limited.
Riverside Capital is delighted to announce that it will continue its partnership with ambassador, Jason Roy, for the upcoming season.
Jason and the rest of the One Day International team have just returned from a triumphant victory over the West Indies in the ODI series.
England smashed the West Indies by 186 runs in the final ODI to complete a 3-0 series whitewash. The win represented the 5th biggest margin the team have achieved and the first ever clean sweep victory in the West Indies.
Jason performed exceptionally in the second ODI where he racked up another half century for the England team, and is now looking forward to his debut for The Gujarat Lions in the IPL before returning for what will be a pivotal summer for both Surrey and England.
Dominic Wright says: “We are delighted to continue working with Jason in 2017. He is a great guy, and a credit to his various teams and sponsors”.
Riverside Capital has successfully funded two investment opportunities, a portfolio of Travelodge Hotels and two logistics warehouses let to DPD UK Ltd.
The successful raises mark the completion of the two investments.
Equity was raised from Riverside Capital’s own private investor platform, with the bulk of the DPD investment being raised in just 6 weeks.
Both investments are on track, with distributions being paid out to investors later this year.
Dominic Wright, Group Chief Executive, says: "Commercial property offers private investors both income and capital growth opportunities and we are pleased to have been able to make these investments available to our private investors from around the world. We believe that direct property investment is the best way to achieve the uncorrelated returns that commercial property has to offer, and by investing with us on a deal by deal basis, investors have choice both in terms of which deals to invest in, and how much to invest."
Riverside Capital has completed on the purchase of two purpose-built delivery depots for its investors. The depots are let to DPDgroup UK Limited for terms of 20 and 25 years.
Located in Swinderby, near Lincoln and in Aberdeen, both units - particularly the Aberdeen unit, where a longer lease has been taken - will play a key role in DPD’s strategic growth plans in the UK.
The total purchase price of the assets is £14.86m, with £8.25m having been raised from Riverside Capital’s private investor base and its partners. The properties generate a net initial yield of 5.28%.
Dominic Wright, Group Chief Executive, says: "These acquisitions fit perfectly with our strategy; long leases, a strong tenant, and in logistics, a sector which is set to experience significant rental growth.
"We now own three DPD delivery depots, and will be looking to acquire further logistics assets in 2017."
Riverside Capital has completed on the forward funding of two new-build properties, let on long leases, to three high quality budget sector tenants: Aldi, Poundworld and Pure Gym.
The buildings are located on a single plot of land on the outskirts of Leeds city centre and, once income producing, will generate a yield of close to 7%.
Leases range from 12 to 20 years, with upward only rent reviews, and all three tenants have top credit ratings.
The acquisition was funded through Riverside Capital’s private investor platform, and is the second acquisition for the Riverside Capital Protected Cell Company (Guernsey).
Dominic Wright, CEO at Riverside Capital, said: “This is an investment that has everything required to deliver strong and sustainable returns to our investors in a post-referendum environment – a great location, strong tenants and long leases.”
Riverside Capital has sold the last asset in their Adelie Foods ‘Bitesize’ Portfolio, in an off market sale for £3.96m, reflecting a net initial yield of 7.08%. OLIM Property completed the purchase for their discretionary fund management client Value and Income Trust plc 4 days after terms were agreed and solicitors instructed.
The freehold industrial unit in Wimblington Drive totals 49,309 sq. ft. and is let to Adelie Foods Group until 2028 with rent reviews in 2018 and 2023 to open market value, subject to minimum increases of 2.5% p.a. compound.
The sale allowed Riverside Capital to achieve returns for investors ahead of expectations, despite the result of the EU Referendum.
George Clark, Investment Director at Riverside Capital said: “This deal in only four days shows, in a post referendum environment, that assets with long dated income with fixed increases remain highly desirable investments. With the yield gap between bonds and property at record levels, this transaction demonstrates how secure income from commercial property continues to provide a very attractive alternative to investors.”
LSH, KLM Retail and Shepherd and Wedderburn acted for the purchaser and Levy Real Estate LLP acted for Riverside Capital.
