London-based Redefine International has sold ten of its regional assets — including Liverpool’s landmark Prudential Assurance Building— to an un-named buyer.
The stock market-listed property investor, voted 2014 UK Real Estate Investment Trust of the Year, said all the properties were part of its non-core portfolio. Redefine confirmed the £35m sale price was more than 12 per cent above valuation.
Designed by Merseyside architect Alfred Waterhouse — also noted for the Natural History Museum and Manchester Town Hall — the Grade II listed Prudential Assurance Building in Liverpool’s Dale Street is the undoubted jewel in the crown of the portfolio.
The building was constructed by Prudential in the mid-19th century as its new regional offices in Liverpool. It was one of a series of offices commissioned from the architect including the firm’s headquarters in Holborn, London. Like all the Prudential buildings of the time it was clad in red architectural terracotta and brick.
The other buildings included in the sale are:
All ten assets were part of the UK real estate investment trust’s Delta portfolio and the proceeds will be used to repay debt associated with the Delta facility which was restructured in 2012.
Mike Watters is chief executive of Redefine International and admitted he was pleased with the successful outcome of this disposal. The sale reduces Redefine’s direct property portfolio to £30m or three per cent of its total worth.
“Investor appetite for regional offices is growing and we are therefore confident of our plans for completing the remaining disposals of our non-core assets,” added Watters.
Last month the income focused REIT announced the purchase of the Doubletree by Hilton Hotel in Edinburgh’s city centre for £25m. Included in the acquisition of the 138-bedroom recently refurbished property was the separate heritable title of The Chanter public house, located on the ground and basement floors of the property.
The hotel will be let to Redefine Hotel Management Ltd, a wholly owned subsidiary of Redefine BDL Hotel Group Ltd, in which Redefine International has a 25.28 per cent stake.
Redefine’s chief executive admitted the purchase had been “structured” on a “No” vote in the Scottish referendum. “Now that the uncertainty surrounding this has been removed we are very pleased to have secured this opportunistic investment,” said Watters.
