This petrol station and Co-op convenience store investment is a good example of the importance of timing in asset management. Having acquired the asset for investors in 2013 for £2.62m at 8.15% NIY, Riverside Capital delivered a 5% annual income distribution to investors throughout the hold period and sold the asset at the right time in the market to achieve a capital uplift at exit. It’s sale in 2017 at £2.96m (7.13% NIY) delivered investors a 1.31x return on equity.
“Delivering a good return to investors was satisfying given the recent negative press around this asset class. This transaction demonstrates our ability to exit at the right time for our investors to deliver strong income and sound capital returns”. Ashley Wilcox, Director, Riverside Capital.
- Hold period 4.5 years
- Annual distribution 5%
- Equity multiple 1.31x