Thursday 3 December 2015

RO ACQUIRES OFFICE BUILDING IN KENT

03/12/15

RO Real Estate, the UK commercial property investment and development company, has completed the acquisition of a multi-let office building in Sevenoaks, Kent, from Marley Pension Limited. The purchase price of £4.6 million reflects a net initial yield of 6.29%.

Located in Sevenoaks town centre, the 14,524 sq ft four-storey office building is close to local amenities and Sevenoaks railway station, which provides excellent access to London via Charing Cross, Waterloo and London Bridge stations.

Current tenants include Hemlow, a commercial company that offer real estate management services, Staff Management, an agency providing care and support for people with physical disabilities, Credence, a professional services business and Brebners, an accountancy, tax and compliance firm.

This purchase is part of RO’s acquisition programme to invest in “core” and “value-add” opportunities in the South of England. RO Real Estate still has a significant amount of equity to invest in lot sizes of £2-5 million.

Richard Bourne, head of RO Real Estate, said: “1 Suffolk Way is an excellent addition to the portfolio. The Sevenoaks office market is currently characterised by a limited supply of good quality space and a healthy level of demand. We see this as an excellent opportunity to manage the asset to deliver long-term growth and performance given the location and market characteristics”.

RO Real Estate was advised by Lambert Smith Hampton. Marley Pension Limited was advised by Stephens Maguire & Company.


- Ends -


For further information:
Edward Rowlandson / Nick Moore, RO Real Estate 
01707 601400 / 0207 025 1780
info@rogroup.co.uk

Kirsty Allan, Tavistock Communications
020 7920 3150
kirsty.allan@tavistock.co.uk

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.

www.rogroup.co.uk
www.rorealestate.co.uk

RO LETS 14,000 SQ FT AT LETCHWORTH

03/12/15

RO Real Estate, the UK commercial property investment and development company, has completed two new lettings, totalling around 14,000 sq ft of industrial space at Woodside Industrial Park in Letchworth, Hertfordshire.

RO has leased 6,856 sq ft of space in Unit 20 to Electronic Waste Recycling on a 5 year lease and 6,875 sq ft in Unit 21 to Toolstation, one of Britain's fastest growing suppliers of tools and accessories to the building trade, on a 10 year lease.

Woodside Industrial Park comprises a modern development of 26 units within the town’s principal commercial and industrial area. It is conveniently located near the station, which provides a 45 minute service direct to London King’s Cross station.

Richard Bourne, head of RO Real Estate, said: “We are seeing a continued increase in demand for units from both local and regional businesses, which is evidenced by the recent lettings at Woodside Industrial Park. Toolstation is a good example of the type of tenant attracted to Letchworth by the quality of accommodation and its excellent location”.


- Ends -


For further information:
Edward Rowlandson / Nick Moore, RO Real Estate 
01707 601400 / 0207 025 1780
info@rogroup.co.uk

Kirsty Allan, Tavistock Communications
020 7920 3150
kirsty.allan@tavistock.co.uk

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.

www.rogroup.co.uk
www.rorealestate.co.uk

Wednesday 28 October 2015

RO REAL ESTATE MAKES KEY APPOINTMENT


28/10/15

RO Real Estate, the UK commercial property investment and development company, has made a significant senior hire with the appointment of Nick Moore, former Director of Real Estate at Lloyds Banking Group, as Senior Investment Manager.

As Senior Investment Manager, Moore will report directly to Richard Bourne, Head of RO Real Estate. Moore’s responsibilities will include obtaining and providing detailed financial and technical investment analysis, identifying opportunities to enhance portfolio performance, progressing property transactions, and providing property investment market knowledge. Moore has more than 15 years’ experience in the commercial real estate industry.

Moore joins from Lloyds Banking Group (LGB), where he held the position of Director in the Real Estate division. He worked at LBG for almost six years and was leading the delivery of the in house real estate advice to the commercial banking teams. Prior to that, he spent four years at PRUPIM (now M&G Real Estate) working with their Life Fund. He also worked for Warner Estates, and gained his early real estate experience at DTZ in their city agency team.

Richard Bourne, Head of RO Real Estate, said: “We are delighted to have Nick joining our team. Nick has an extensive understanding of the UK real estate market which will prove invaluable to us as we grow our business. His expertise will support and focus our future investments as we still have a significant amount of cash to invest during the remainder of the year.”

- Ends -

For further information:
Edward Rowlandson / Nick Moore, RO Real Estate 
01707 601400 / 0207 025 1780
info@rogroup.co.uk

Faye Walters, Tavistock
020 7920 3150
fwalters@tavistock.co.uk

Notes to Editors:
RO Real Estate is a privately-owned company specialising in commercial property investment and development in the south of England. 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.

www.rogroup.co.uk

Friday 16 October 2015

RO COMPLETES THREE LETTINGS IN BRACKNELL

16/10/15

RO Real Estate, the UK commercial property investment and development company, has completed three lettings at its 21,200 sq ft office building, Amber House on Market Street in Bracknell, generating an additional rent roll of £51,229 per annum. Following these lettings there are only two vacant suites left, one suite providing 1,350 sq ft and the other providing 1,307 sq ft.

The recent lettings include:

1,522 sq ft first floor rear suite to Victim Support, a charity that provides help to victims of crime in England and Wales

2,272 sq ft rear left ground floor suite to Catch 22 Ltd, a charity that works to rehabilitate offenders

1,287 sq ft rear right ground floor suite to A4E, a leading employment support and training services company

Page Hardy acted for RO. The others were unrepresented.

Amber House is within a minute’s walk of Bracknell’s bus and railway stations and benefits from excellent onsite parking and good quality office space. Other tenants include Jaltek, Infinitt, Quest, Attika, Bracknell Forest Voluntary Action, Northgate, PCS Technology and Mitie.

Richard Bourne, head of RO Real Estate, said: “We are very pleased to have completed these lettings at Amber House, which are testament to the property’s credentials and our asset management team’s ability to secure high-quality and reliable tenants. The building is rare in Bracknell as it offers open plan office suites of variable sizes, on flexible leases. There are just two vacant units at the property and we have been pleased with the level of occupier interest in both.”

- Ends -

For further information:
Edward Rowlandson / Nick Moore, RO Real Estate 
01707 601400 / 0207 025 1780
info@rogroup.co.uk

Faye Walters, Tavistock
020 7920 3150
fwalters@tavistock.co.uk

Notes to Editors:
RO Real Estate is a privately-owned company specialising in commercial property investment and development in the south of England. 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.

www.rogroup.co.uk

www.rorealestate.co.uk

Monday 13 July 2015

RO TRADES FIVE ASSETS

Huddersfield
13/07/15


RO Real Estate, the UK commercial property investment and development company, has completed the sale of five properties located mainly in the North East of England for a combined price of £5.46 million.

These sales are part of the Company’s ongoing strategy to dispose of non-core assets and reinvest the proceeds into core income and value-add opportunities in order to deliver a high-quality property portfolio with large capital growth potential and a secure income base.

RO has disposed of:


A 37,340 sq ft retail and office building in Huddersfield for £2.275 million to MCR Property Group. The property comprises five retail units on the ground floor with four storeys of offices to the upper floors. The building is located within easy walking distance of the central station, Kirklees College and the University of Huddersfield. BNP Paribas Real Estate advised RO and the purchaser was unrepresented.

A 25,143 sq ft modern single-let industrial warehouse unit in Sunderland for £1.193 million to Cole Real Estate. The property is located on Rainton Bridge Industrial Estate and is entirely let to Chemviron Carbon Ltd at a yearly rent of £110,400. BNP Paribas Real Estate advised RO and the purchaser was unrepresented.

Carlyle’s Court, a 19,207 sq ft mixed-use retail and office investment for £1.6 million to Rally Design. The property is located in the historic city of Carlisle and is fully leased to 16 tenants for a total net rent of £202,200 per annum. BNP Paribas Real Estate advised RO and the purchaser was unrepresented.

A 8,545 sq ft industrial investment in Jarrow which was sold at Allsop auctions for £207,500. The property comprises an industrial unit with its own service yard and is located on Shaftesbury Avenue within an established industrial estate, producing a yearly rent of £25,000. 

A 1,355 sq ft retail unit based at 2 St Thomas Square, Ryde, Isle of Wight. The property was sold to the Tenant privately for £185,000.

    Richard Bourne, head of RO Real Estate, said: “These disposals follow the completion of our asset management programmes for each property, which included significant refurbishment/extension works and new lettings. We now have around £15-20 million to invest and will continue to invest in assets in strong micro-locations, across the south of England, which we believe will deliver us strong long-term income or which have the potential to add significant value.”


    - Ends -

    For further information:

    Edward Rowlandson / Nick Moore, RO Real Estate 
    01707 601400 / 0207 025 1780

    info@rogroup.co.uk

    Faye Walters, Tavistock
    020 7920 3150
    fwalters@tavistock.co.uk

    Notes to Editors:
    RO Real Estate is a privately-owned company specialising in commercial property investment and development in the south of England. 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.

    www.rogroup.co.uk
    www.rorealestate.co.uk

    RO TRADES FIVE ASSETS

    Huddersfield

    13/07/15

    RO Real Estate, the UK commercial property investment and development company, has completed the sale of five properties located mainly in the North East of England for a combined price of £5.46 million.

    These sales are part of the Company’s ongoing strategy to dispose of non-core assets and reinvest the proceeds into core income and value-add opportunities in order to deliver a high-quality property portfolio with large capital growth potential and a secure income base.

    RO has disposed of:


    A 37,340 sq ft retail and office building in Huddersfield for £2.275 million to MCR Property Group. The property comprises five retail units on the ground floor with four storeys of offices to the upper floors. The building is located within easy walking distance of the central station, Kirklees College and the University of Huddersfield. BNP Paribas Real Estate advised RO and the purchaser was unrepresented.


      A 25,143 sq ft modern single-let industrial warehouse unit in Sunderland for £1.193 million to Cole Real Estate. The property is located on Rainton Bridge Industrial Estate and is entirely let to Chemviron Carbon Ltd at a yearly rent of £110,400. BNP Paribas Real Estate advised RO and the purchaser was unrepresented.


        Carlyle’s Court, a 19,207 sq ft mixed-use retail and office investment for £1.6 million to Rally Design. The property is located in the historic city of Carlisle and is fully leased to 16 tenants for a total net rent of £202,200 per annum. BNP Paribas Real Estate advised RO and the purchaser was unrepresented.


          A 8,545 sq ft industrial investment in Jarrow which was sold at Allsop auctions for £207,500. The property comprises an industrial unit with its own service yard and is located on Shaftesbury Avenue within an established industrial estate, producing a yearly rent of £25,000. 


            A 1,355 sq ft retail unit based at 2 St Thomas Square, Ryde, Isle of Wight. The property was sold to the Tenant privately for £185,000.


              Richard Bourne, head of RO Real Estate, said: “These disposals follow the completion of our asset management programmes for each property, which included significant refurbishment/extension works and new lettings. We now have around £15-20 million to invest and will continue to invest in assets in strong micro-locations, across the south of England, which we believe will deliver us strong long-term income or which have the potential to add significant value.”
              - Ends -

              For further information:

              Edward Rowlandson / Nick Moore, RO Real Estate 
              01707 601400 / 0207 025 1780

              info@rogroup.co.uk

              Faye Walters, Tavistock
              020 7920 3150
              fwalters@tavistock.co.uk

              Notes to Editors:
              RO Real Estate is a privately-owned company specialising in commercial property investment and development in the south of England. 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.

              www.rogroup.co.uk
              www.rorealestate.co.uk

              Tuesday 31 March 2015

              RO/OAS ANNUAL DEBATE: FOCUS ON SOUTH EAST OFFICES



              31/03/15

              The South East office market suffered a “blip rather than a trend” in 2014 as take-up and in particular large deals remained stubbornly modest key players believe, while a significant majority expect recovery this year. This was one of many themes that emerged at this year’s RO Real Estate and Office Agents Society lunch. CoStar News was invited to join an insightful and entertaining debate.
              The debate, an annual lunch meeting that discusses key issues affecting the UK office market, focused specifically on South East offices.

              The participants were: Richard Bourne, RO Real Estate, Ryan Dean, Office Agents Society chairman and Knight Frank, Jamie Renison, DTZ, Joel Hawkins, Bell Hammer, Chris Williams, CBRE, Rob Bray, Bray Fox Smith, James Silver, Landid, Paul Norman, CoStar, Edward Smith, Strutt & Parker, Giles Easter, Aberdeen Asset Management, James Thornton, Mayfair Capital, Nick Coote, LSH, Nick Moore, Lloyds Banking Group

              As a scene setter the debate kicked off with the findings of a poll taken of the OAS’s 800 plus members to test the temperature in terms of expectations for the occupier and investment markets across this key office region. Unsurprisingly, a mixture of hope and certainty has driven confidence that the low base for take up in 2014 will be improved upon while there is uncertainty as to whether a stellar year for the capital markets can be improved on. The results were:

              Do you think office take up in 2015 will be?:
              a) more than 2014 – 77%
              b) less than 2014 – 10%
              c) similar – 13%

              Investment volumes in 2015 will be:
              a) more than 2014 – 47%
              b) less than 2014 – 16%
              c) similar – 37%

              Richard Bourne of RO began proceedings by saying that both the occupier and development markets had moved on in significant ways since last year’s event and therefore it was great to have individuals from the development, investment and banking world to discuss how the changing dynamics was impacting activity.

              Ryan Dean, of Knight Frank and the OAS, chaired proceedings and began by asking:

              “Was the lack of big deals in 2014 a blip or a more worrying trend?

              Chris Williams: “It is a blip rather than a trend. It was obvious that regionally bigger deals were being done and this was disappointing but we are all aware that there are larger deals waiting to happen for the likes of Amadeus and TK Maxx and we know from our clients that the bigger strategic requirements are not dead.”

              Giles Easter: “I think there is a concern that larger occupiers may be have made the jump back into central London and in some cases this change could be better reflected in the South East. Ultimately developing a building starts with the people and ends up with the people.”

              Nick Coote: “The key trend is everything is about urbanisation. There will be a rebalance in favour of the Thames Valley thanks to rail infrastructure improvements that are truly significant. And in 2017 when London is rerated it will even out the value of places in the South East and back offices will move out and [the lack of big deals] will be seen as a blip.”

              Chris Williams: “The reality is however that businesses can cut people costs more substantially by moving to Glasgow or Cardiff and further afield so this is not a certain factor.”

              Nick Moore: “The key in deciding where to locate will always be what is the right solution for my business and the Thames Valley needs to provide this.”

              Ed Smith: Ultimately there does come a tipping point in terms of cost and this will happen in favour of the Thames Valley. In Hammersmith rents have soared and whereas some occupiers have been prepared to suffer a rental rise from £35 to £50 per sq ft there are others that will look further afield and we of course are aware that tenants such as Monsoon, Boden and Net A Porter are all considering moving further afield.”

              Giles Easter: “It is true that many occupiers are location agnostic and will go where the building is.”

              Jamie Rension: “We can see this in Central London where occupiers are looking across all of London to access staff and talent. However they are very often crippled by central London car restrictions.”

              Nick Moore: “There is very little supply for large-scale occupiers and that is one of the main reasons for the current blip in large scale deals.”

              Joel Hawkins: “You have to know your occupier. Some companies employ young people who want to be closer to London while others employ lots of older people and so will look further out. The point is we have to deliver different buildings in the South East and we have to be able to speculatively build almost in such a way as not to alienate anyone.”

              James Silver: “What has been crucial to us [at Landid] is trying to make sure our space offers something different, something akin to the warehouse style developments coming forward in Shoreditch and fringe London locations. Interestingly at Reading and our One The ValpyThe Vaupry development where we thought we would be appealing specifically to younger companies our first tenant which signed up - Maybe - was headed by a 70-year-old engineer boss who loved the space.”

              Ryan Dean: “So what do occupiers want in the South East?

              Chris Williams: “There are greater expectations in terms of amenities. Schemes that build in restaurants and retail are succeeding.”

              James Thornton: “We are very focused on town centres and the diversity of experience this offers.”

              Richard Bourne: “Town centre amenities are crucial for the younger employees.”

              Jamie Renison: “Great connectivity is important. The Thames Valley is completely behind the curve at present in terms of public transport and this needs to be addressed.”

              Nick Coote: “Good car parking ratios remain crucial to our market. Pepsi recently moved to Green Park, but it also seriously considered a Boultbee town centre scheme in Reading but ultimately decided against this because of the car parking space in comparison.”

              Joel Hawkins: “This very much depends. In Uxbridge where we have a scheme tenant car parking is not an issue.”

              Rob Bray: “One thing that seems to be overplayed is the lack of appetite for out of town locations. There are still great deals being completed out of town.”

              Ed Smith: “The figures do bear this out. According to Strutt & Parker and our figures, 10 years ago 41% of deals completed in town and 59% were out of town. That has now narrowed to 44% in town and 56% out of town. There has really been little change.”

              Joel Hawkins: “We think that nine out of 10 times money will go to town centre locations.”

              Nick Coote: “That is true. The UK institutions are all buying in-town and selling out of town.”

              Ed Smith: “The business parks that will survive will be the big ones.”

              Richard Bourne: “Business parks are not necessarily dead. Aztec West is nearly full again with occupiers looking for space with low supply.”

              Nick Coote: “It will be all about big floorplates and amenities and transport.”

              Giles Easter: “Success will be all about three things - critical mass and scale, single ownership and the amenity.”

              Nick Moore: “The focus has to be on asset quality. But at Lloyds we prefer town centres because the threat to the high street means there is more opportunity and with town centres there is a better track record often.”

              Ryan Dean: Is it an occupier or a landlord market now?

              Chris Williams: “The central London occupier will start five years in advance looking at its options for moving while we are lucky in the Thames Valley if they start two years in advance. Occupiers have been used to oversupply but that is changing and the balance of power is switching.”

              Nick Coote: “Once occupiers go over the gain line now and by that I mean the point at which they have run out of time to find a new office while negotiating the terms they want they have a problem in this market. They simply will not find the value or solution they want.”

              Nick Moore: “I wish occupiers understood the value of their own covenants. We could fund prelets quite happily if they did.”
              Ryan Dean: “There is now a premium being paid by occupiers to take big space.”
              Giles Easter: “It is fairly balanced between landlord and tenant at present.”
              James Silver: “We have a preference for multilet schemes and that is a common theme. Investors want to derisk by having a number of rather than one tenant. In the past we would have held out for an 80,000 sq ft to 90,000 sq ft letting at our Urban Building in Slough for instance but that has flipped around and we would more likely do a small letting first.”

              Ryan Dean: What will happen to rents?

              James Thornton: “As ever it is all about supply and demand and there must be rental growth this year.”
              Nick Coote: “A key problem is there is nothing of quality in the £18-£19 sq ft arena which is holding back the market.”

              Ryan Dean: The question is do you have to be brave enough now as the landlord to ask for the rent at £34 rather than the current £24 per sq ft because you believe that is what the building is worth?”

              Richard Bourne: “Tenants are paying more for good quality space in under supplied markets like Weybridge.”

              Joel Hawkins: London is not the Thames Valley. It would be a big test to see whether the Thames Valley can significantly lift quoting rents from where they are.”

              Ryan Dean - Are we in a good place for 2015?

              Chris Williams: “2007 was a fantastic year and then of course everything changed. The fundamentals are in place for a strong year again.”

              James Thornton: “There is plenty to be optimistic about in the Thames Valley now, particularly with significant infrastructure improvements in the pipeline at the airports and elsewhere.”

              Giles Easter: “The reality is those coming to invest in the South East now will have arrived too late in many cases. There was so much fat in the deal before that you could afford to keep your powder dry but with construction costs having lifted it is far more difficult now. If you have done your deal you are sitting pretty however.”

              Joel Hawkins: “This has been the slowest and most considered period of development in the South East of any cycle and that has to stand the market in good stead.”

              Nick Moore: “We will look to lend. We are looking for track record in our customers and a measured risk profile, particularly focusing on balanced multilet property in town.”

              Richard Bourne: “Strip out the 100,000-plus sq ft deals, and the occupier market looks very strong.”

              All of the attendees were asked finally to vote for the location they felt is set for the strongest performance over the next period.

              The most popular was Maidenhead followed by Croydon, Slough, Reading and finally Hammersmith, Cambridge, Weybridge and Oxford.

              pnorman@costar.co.uk


              - Ends -

              For further information:
              Edward Rowlandson / Nick Moore, RO Real Estate 
              01707 601400 / 0207 025 1780
              info@rogroup.co.uk

              Faye Walters, Tavistock Communications
              020 7920 3150
              fwalters@tavistock.co.uk

              Monday 2 March 2015

              RO COMPLETES SOUTH EAST OFFICE DISPOSALS


              02/03/15

              RO Real Estate, the UK commercial property investment and development company, has completed the sale of three office assets located in the South East of England for a combined price of £7.825 million.

              RO has sold One and Two Manor Park in Reading to Ultima Business Solutions, one of the UK’s leading providers of IT infrastructure solutions, for £7 million.

              The properties comprise a total of 68,000 sq ft of space, located just off Basingstoke Road and one mile from junction 11 of the M4. RO completed a number of asset management initiatives at the office scheme including a major refurbishment of One Manor Park, leading to lettings to ALK Abello and Computer Task Group.

              Lambert Smith Hampton and Knight Frank advised RO and Sharps Commercial advised Ultima Business Solutions on this transaction.

              RO has also sold Fortune House in Egham, Surrey, to Spinnaker for £825,000. The property comprises a 4,754 sq ft self-contained two storey office building. New Ballerino and Vail Williams advised RO and the purchaser was unrepresented.

              These disposals are part of RO’s ongoing strategy to reposition its portfolio by carrying out a rolling disposal programme and recycling the proceeds for reinvestment in core income and value-add opportunities in the South East. RO Real Estate still has a significant amount of cash to reinvest in lot sizes between £2-5 million.

              Richard Bourne, head of RO Real Estate, said: “We will use the cash resources from these disposals to reinvest in a mix of assets which will deliver either high-quality secure income or asset management, development and refurbishment opportunities. We continue to strive towards delivering a high-quality portfolio with large capital growth potential and a secure income base.”

              - Ends -

              For further information:
              Edward Rowlandson / Nick Moore, RO Real Estate 
              01707 601400 / 0207 025 1780
              info@rogroup.co.uk

              Faye Walters, Tavistock Communications
              020 7920 3150
              fwalters@tavistock.co.uk

              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

              Friday 27 February 2015

              THE RO REAL ESTATE AND OAS ROUNDTABLE DEBATE



              27/02/15

              THE FUTURE OF THE SOUTH EAST MARKET

              RO Real Estate has teamed up with the Office Agents Society and CoStar to sponsor and host a roundtable debate on the South East office market which is taking place today at Mews of Mayfair restaurant. According to a poll conducted by the OAS, confidence is high surrounding the South East office market with 77% of OAS members believing that office take up in the South East will be more than it was in 2014. The survey also showed that confidence was high for investment volumes in 2015 with 47% believing that they will be more than in 2014 and 37% thinking that they will be similar to levels seen in 2014. We are looking forward to seeing what our panel of industry experts has to say on the matter later today!

              Thursday 12 February 2015

              RO ACQUIRES RETAIL ASSET IN BURY ST EDMUNDS


              12/02/15

              RO Real Estate, the UK commercial property investment and development company, has completed the acquisition of a retail property in Bury St Edmunds, Suffolk for £3.425 million, reflecting a net initial yield of 7.16%, from Clearbell, the private equity real estate fund management business.

              The property is located on 56-58 Cornhill Street in the centre of the medieval market town of Bury St Edmunds and comprises three retail units over ground, mezzanine and first floors, totalling 10,184 sq ft of space.

              The building is fully let to Halifax, Harriet’s CafĂ© and Laura Ashley, and produces a combined total rental income of £259,425 a year.

              This purchase is part of RO’s acquisition programme to invest in core income and value-add opportunities in the South of England. RO Real Estate still has a significant amount of cash remaining to reinvest in lot sizes between £2-5 million, which offer the opportunity to add value through active asset management and provide core income returns for our portfolio.

              Richard Bourne, head of RO Real Estate, said: “This property is located in a prime pitch, within a strong performing market town with good demand and low vacancy. In the long term we feel that the asset will be a strong performer with an opportunity to increase value through future rental growth. The acquisition also further improves the security and performance of our portfolio. ”

              RO Real Estate was advised by Green & Partners.  The vendor was advised by Bruce Gillingham Pollard.

              -          Ends    -

              For further information:
              Edward Rowlandson / Nick Moore, RO Real Estate 
              01707 601400 / 0207 025 1780
              info@rogroup.co.uk

              Faye Walters, 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. 


              Monday 19 January 2015

              RICHARD'S VIEW



              19/01/15

              THE TRIALS AND TRIBULATIONS OF CLOSING THAT PROPERTY DEAL

              On a cold Friday night in early December 2005, I left the office, looking forward to the weekend, content in the knowledge that our £14.775 million sale of the Hemel One office building in Hemel Hempstead would exchange and complete on Monday.

              Unfortunately, the sale never completed. It was not the fault of the buyer renegotiating, nor the emergence of a defect to the building but something far more dramatic. Just after 6am on the Sunday morning of that weekend, the morning after our Christmas party in a Hatfield Hotel, I awoke to a loud rumbling and the building shaking. Either my body was informing me of the hangover that was to ensue or there had been a massive explosion. A few minutes later I received a phone call informing me that the largest explosion in peacetime Europe had occurred at the Buncefield fuel storage facility, causing extreme damage to our office building which was only 150 metres away.

              The question now was where we should go from here. Our priority was to try and salvage the deal with LaSalle. However, as anticipated, the amount of damage made that impossible, despite a rather entertaining call with my counterpart! My instinct was that the only viable option was to reinstate Hemel One, to get the tenants back into occupation, and then to try to sell it all over again. This strategy worked perfectly.

              A few days later, a colleague and I managed to dodge security and road closures to gain access to Hemel One. We discovered that the damage to the 96,000 sq ft building was extensive. The majority of the windows had blown out of their apertures and in some instances the window frames and the glass had blown through the building and were embedded in the concrete walls in the middle of the floors. Strangely some areas of the building looked untouched, with books and pens laid out as left on Friday evening, while other sections of the office had been absolutely destroyed. Fortunately it was a Sunday and no one was in the building.

              Our first job was to recover and rescue emergency items for our tenants and make the building safe. We could then remove tenants equipment and finally begin refurbishment/reinstatement, so that we could retain our tenants and get them back into the building as quickly as possible. It was vital that we got Kodak (our main tenant at the time) back in the building within 12 months, otherwise they would have taken a long term commitment elsewhere. Therefore we had the whole building surveyed to understand the extent of the damage and to quickly produce a specification for the refurbishment. Although the original programme stated 18 months, we got Kodak back in within 12 months, as promised, albeit with some elements of the building being finished later.

              This meant that we successfully managed to retain all of our existing tenants. In addition we managed to lease the remainder of the now Grade-A space on both traditional and innovative, semi-serviced office agreements. Tenants included a number of very well-known companies, including Kodak, Ericsson, Kcom and BP.

              Various asset management and development initiatives led to an increase in the headline rent from £12 per sq ft to £17 per sq ft and a net rental income of £1.46 million a year.

              We also purchased an adjoining 1.5 acres of land from 3 Com in 2008 in order to rationalise parking, improve Hemel One’s frontage and release additional land for development. We set about reconfiguring the estate to provide four self-contained plots, including Hemel One with parking for 465 cars and three self-contained plots of 1.74 acres, 1.8 acres and 1.4 acres, which were sold for £3.45 million to owner occupiers.

              At the end of last year, with a mixture of sadness and relief we finally exited our investment, when we completed the sale of Hemel One to Threadneedle Investments for £17.75 million, reflecting a net initial yield of 7.75%.

              As I walked home that evening I thought of two phrases that perfectly summed up the Hemel One saga:

              “Never count your chickens” and “Success through adversity”