Riverside Capital has sold its Pure Gym in Wandsworth, South London, for £4.35 million, returning investors almost double their money in 4 years. The acquisition was completed by AEW UK Long Lease REIT Plc on 10 October 2017. The 19,900 sq. ft. gym, located on the ground floor and basement level of Cantilever House on Wandsworth Road, is let to Pure Gym Limited until 2032. Lease reviews are linked to RPI, subject to a collar and cap of 1% and 4%. Its sale, at a net initial yield of 5.06%, demonstrates the continued demand for performance linked income within this growing sector. Ashley Wilcox, Investment Director at Riverside Capital, said: “We are delighted with the stellar returns generated by the Pure Gym deal. The Nine Elms and Battersea story has been phenomenal. In addition, Pure Gym is now the UK’s leading gym operator. These two dynamics were key to our business plan and this deal highlights the importance of investing into sub-markets and covenants at the right time.” Cushman & Wakefield acted on behalf of AEW UK Long Lease REIT Plc, with Levy Real Estate LLP acting for Riverside Capital.
Riverside Capital has sold a Premier Inn hotel in Camberley for £8.465 million, returning 1.43x equity to its investors. The acquisition, reflecting a net initial yield of 4.97%, was completed by AEW UK Long Lease REIT Plc on 12 September 2017. The 95 bedroom, long leasehold hotel located on Park Street, Camberley is let to Premier Inn Hotels until 2037 with 5 yearly rent reviews. The lease is index linked to CPI, subject to maximum yearly increases of 5%. Its sale, at 4.97%, demonstrates continuing growth in the budget hotel sector, largely driven by the strength of the Premier Inn and Travelodge Hotels covenants. Ashley Wilcox, Investment Director at Riverside Capital, said: “This deal demonstrates the continuing thirst for performance-linked income, leased to secure covenants. Since the EU referendum, the budget hotel sector has continued to grow and has outperformed many other sectors.” Cushman & Wakefield acted on behalf of AEW UK Long Lease REIT Plc, with Levy Real Estate LLP acting for Riverside Capital.
Riverside Capital has completed on the purchase of 197-205 City Road or “Old Street Works”, a 33,179 sq.ft. mixed-use asset in the heart of London’s “Tech City”.
The former Victorian warehouse was purchased by the company’s private investor platform for £27.5m. Clients invested a total of £16.2m in equity, with the remaining balance being provided by Lloyds Banking Group. The building sits just 300m from Old Street or “Silicon Roundabout”, one of the world’s largest start-up clusters and a hot-spot for tech companies. The immediate area has been transformed in recent years with the likes of Derwent London developing huge office schemes, and new luxury residential and hotel developments making the area a highly desirable place to live a work. Private clients were able to invest in the opportunity from £25,000. Dominic Wright, Group Chief Executive, said: "We are delighted to have been able to offer our investors the chance to participate in this high quality investment, and we experienced significant demand from our private investor network from around the world. We believe that direct investment is the best way for investors to access the real benefits that commercial property has to offer, and we look forward to making this purchase a success."
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 completes on the sale of Cresta Court Hotel, Altrincham, returning a 2x equity multiple to investors
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 completes two equity raises totalling £17 million for DPD and Travelodge Investments
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."