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
Faye Walters / James Whitmore, Tavistock Communications
020 7920 3150Notes 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.