RO Real Estate, the UK commercial property investment and development company, has completed the sale of its residential ground rent portfolio to a private investor for £1.3 million.
The portfolio comprises the freeholds of 134 flats in five residential blocks in the South of England: Pegasus Court, Acton; Pegasus Court, Harrow; Wilshire Court, Hitchin; Pegasus Court, Rustington; and James House in Ryde on the Isle of Wight.
The total ground rent income from the portfolio is £54,440 per annum, reflecting a blended net initial yield of circa 4%.
Four of the blocks were developed in conjunction with Pegasus Retirement Homes, the retirement housing and property developer, in which RO acquired a majority interest in 1998. RO then retained the freehold of the blocks when Pegasus was acquired in 2007 in a management buyout, backed by RBS Equity Finance.
Richard Bourne, head of RO Real Estate, said: “This portfolio has provided us with a steady income for nearly nine years. However, since selling Pegasus in 2007 the ground rent portfolio is no longer part of our core strategy and we believe that now is the right time to sell”.
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For further information:
Edward Rowlandson / Nick Moore, RO Real Estate
01707 601400 / 0207 025 email@example.com
Kirsty Allan, Tavistock
020 7920 3150