Tuesday 22 August 2017

SALE OF LYTHAM ST ANNE'S TO SAVILLS INVESTMENT MANAGEMENT

22/08/2017

Further commercial success for the RO with the sale of its property in Lytham St Anne's to Savills Investment Management 

12 month real estate dealflow now in excess of £54 million


The RO announces the sale of its property in Lytham St Anne’s to Savills Investment Management for £6.7 million, bringing its total of sales and acquisitions to in excess of £54 million over a 12 month period.

The property in Lytham St Anne’s was originally acquired with two floors of tired offices above retail space. With a strong location underpinning the investment opportunity, the RO was able to acquire planning to add an extra floor to the building and convert the office space into a Travelodge Hotel.  This dramatically improved both the hotel and the retail premises below.

Overall the site has now been transformed into a thriving trading location in a popular costal town, with 90% of income secured to national covenants and AWULT of 15 years.

The sale is part of the RO’s ongoing strategy to reposition its property portfolio and to recycle the proceeds for re-investment into core income and value-adding opportunities predominantly in the South East of England.

The RO is a family owned trading and investment business which has a long heritage of investing in real estate assets. It has been an active and successful 12 months for the RO’s Real Estate division, which recently appointed David Kershaw from Balfour Beatty Group, as their new General Manager and has now sold 5 sites for a total combined value in excess of £37 million.  The Group has also been actively acquiring properties and has made 3 new investments for a combined total in excess of £17 million.

Over the next decade the RO has a prospective development programme with a gross development value in excess of £200 million and the business owns or manages over 1,000,000 square foot of commercial property across the UK, predominantly in the South East of England.

Nick Moore, Senior Investment Manager for RO Real Estate commented:

“We are proud to see our hard work and investment on this asset pay off. The transformational work done at Lytham is testament to our asset and development management teams who have significantly increased value through their efforts.  The sale followed a highly competitive bidding process, which demonstrated strong investor demand for long income assets.  We look forward to recycling this capital.

CBRE advised the RO and Savills Investment Management were represented by Savills on this transaction.”

David Kershaw, General Manager added:

“We believe in developing strong and committed relationships and have established a core group of advisers who bring us opportunities that match our criteria with an initial value of between £2 million and £7 million.  We are actively rebalancing our commercial property portfolio and as a family owned business can make decisions quickly and efficiently with access to a healthy balance sheet.  We would welcome the opportunity to hear from more partners with investment ideas, particularly with an emphasis on development opportunities.”

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For further information

RO Real Estate

John West
Belvedere Communications

Notes to Editor

RO Real Estate is a privately-owned company specialising in commercial property investment and development in the south east, with a portfolio of more than £80 million of properties. It is the property division of the RO Group, which was founded in 1932 by Stanley Graham Rowlandson. His innovative attitude to business has been carried forward by his son, and current Chairman, Richard Rowlandson, who used the Group’s property and retailing experience to develop over 40 neighbourhood centres in the 1980s and 90s and 30 Pegasus Retirement Homes in the 2000s. Now Graham’s grandson and current Group Managing Director, Edward Rowlandson has grasped the mantle overseeing the Group’s investment in various entrepreneurial ventures which in addition to commercial property investment include residential development and high quality holiday lodge parks.


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