14/02/14
RO Real Estate, the UK commercial property investment and development company, has completed £15 million of transactions as part of its on-going investment strategy.
RO is
repositioning its portfolio by carrying out a rolling programme of disposals and
recycling the proceeds for reinvestment in core income and value-add
opportunities in the South East.
As
part of this portfolio realignment RO has disposed of £6.6 million of its non-core
secondary assets outside the South East and acquired £8.6 million of high-quality
properties in the South East. These acquisitions offer the opportunity to add
value through active asset management, one of the company’s key strengths. Richard Bourne, head of RO Real Estate, said: “The transactions will improve the quality and performance of our portfolio. We have significant cash resources available and will be actively looking for lot sizes between £2-5 million in the South East, an area we have identified for secure growth and long term potential.”
RO has disposed of:
RO24 Industrial Estate (40,455 sq ft), South Marston Park, Swindon, for £1.89 million to IO Investments
Valley Road Industrial Unit (90,000 sq ft), Harwich to an owner-occupier
Busy Bees Nursery (6,100 sq ft), Stockley Park, for £1.27 million to Merritts Properties
The Engine Room Newhall Square (5,283 sq ft), Birmingham, for £465,000 to Glancy Nicholls Architects
RO
has acquired:
Persimmon
House, Brooklands, Weybridge for £4.25 million. The 22,101 sq ft office
building is let to Ideal Homes Ltd on a lease expiring in November 2015 at a
rent of £475,000 a year, reflecting a net initial yield of 10.56%. RO intends
to refurbish and extend the property to provide 31,000 sq ft of grade A office
space and deliver a return on cost in excess of 15%.
Travelodge, Taunton, for £2.56 million. The 64-bed
hotel is let with 44 years unexpired to Travelodge at a rent of £177,920 a
year, which reflects a net initial yield of 6.57%. The lease has uncapped rent
reviews to 102.5% of the Retail Prices Index.KFC and Pizza Hut, Solstice Park, Amesbury, for £1.81 million. The two restaurants and drive-through units comprise 5,802 sq ft of space and are let with 17 years unexpired, producing a rent of £146,625 a year, which reflects a net initial yield of 7.66%.
For further information:
Richard Bourne, RO Real Estate
0207 025 1780
Richard.Bourne@rogroup.co.uk
Faye
Walters / James Whitmore, Tavistock Communications
020
7920 3150
Notes to Editors:RO Real Estate is a privately-owned company specialising in commercial property investment and development in the South East. It is the property division of the RO Group, which has majority interests in businesses involved in residential development, high-quality holiday lodge developments, domiciliary and specialist care services and the development of utility-scale solar energy projects.
www.rogroup.co.uk
www.rorealestate.co.uk
