This investment presented a good opportunity to capitalise on the income growth provided by a highly secure, low-risk tenant and five yearly rent reviews. Riverside Capital secured the portfolio of 33 trade counters let to Travis Perkins Plc for its investor base in a JV, at a total cost of £33.37m. Identifying an opportunity to maximise value, two assets within the portfolio were sold separately at a premium prior to the planned exit date. The remaining portfolio was then sold for £45.35m after capturing income and value growth. The sale to Cordatus reflected a net initial yield of 5.35% and returned 1.5x equity to investors over a 4.5 year hold period.
"This deal could deliver on the ongoing appetite for income, paying a dividend throughout the hold period and returns on exit. Returns were boosted by opportune early sales, providing a strong overall return"
- Hold period 4.5 years
- Annual distribution 6%
- Portfolio value uplift 36%
- Equity multiple 1.5x