On the same day it paid £47.5m for a Suffolk retail park, the independent real estate fund Rockspring has sold a City of London office block for £70m.
The UK and European focused asset manager acquired the Euro Retail Park at Ipswich from Helix Property Advisors. The majority of tenants on the 210,534 sq ft retail warehouse park will face a renegotiation of their leases in little over ten years.
Commenting on his company’s latest acquisition — located south east of the town centre — Phil Sturdy, European director at Rockspring said: “Euro Retail Park fits perfectly with this fund’s core-plus, value-add strategy. It is a high quality, low risk retail park that will not only generate strong income returns, but offers value growth potential through a pro-active asset management strategy.”
Jamie Naughton, of specialist retail warehouse and foodstore property consultants Edgerley Simpson Howe, added: “The property offers a solid income base and it is in a strong location, with the John Lewis and Waitrose stores directly opposite the scheme being a good driver of footfall to the area.”
Other long-term tenants at Euro Park include B&Q, discount retailer B&M, Sports Direct, Halfords, Dreams, the furniture chain ScS, Wren Kitchens, Harveys and Carpetright. Restaurant units are let to Pizza Hut and Burger King.
Within minutes of confirming its Suffolk deal, Rockspring said it had sold 63 St Mary Axe in the City. The 83,000 sq ft office building has been acquired by AXA Real Estate on behalf of French public sector pensions group ERAFP
Situated in a prime location within walking distance of Liverpool Street, Moorgate and Bank underground stations, the EC4 property was purchased in 2011 by Rockspring in a joint venture with investment company, Moorevale. Since then the building has undergone a complete refurbishment that includes the addition of two new floors.
In a brief statement, Rockspring said: “Having purchased this asset in 2011, we have carried out a major asset management initiative in order to maximise value and subsequently enhance this London office building. The sale of 63 St Mary Axe is the culmination of this programme and represents a very successful result for our client.”
Anne Kavanagh, Global Head of Asset Management & Transactions at AXA Real Estate, said: “At a time when demand is expected to continue to exceed supply for Grade A office space in London’s prime locations, AXA Real Estate further demonstrates excellence in sourcing high quality properties.
“Through utilising our existing relationships and strong on the ground teams, we have been able to successfully execute this transaction at an opportune time when the City’s increasingly dominant position as a global business destination continues to drive lower vacancy rates in the area.”
