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 Café 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.
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Ends -
For further
information:
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.
