Tuesday 1 March 2016

RO SELLS GROUND RENT PORTFOLIO

01/03/16

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 1780
info@rogroup.co.uk

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

RO COMPLETES OFFICE DISPOSAL IN SURREY

01/03/16

RO Real Estate, the UK commercial property investment and development company, has completed the sale of a 19,737 sq ft office building in Egham, Surrey.

RO has sold Crabtree Office Village, its four unit office property to House of Hiranandani for £4.3 million (6.9% NIY). Over recent years, RO has fully let the scheme and increased the ERV through asset management and refurbishment.

This disposal is part of RO’s ongoing strategy to reposition its portfolio by carrying out a rolling disposal programme once the value of assets have been maximised 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 are constantly in the process of optimising the value of our portfolio. This sale is a good illustration of our ability to extract substantial value out of an asset and maximise our returns at exit.”

CBRE Ltd advised RO and Gerald Eve LLP advised House of Hiranandani on this transaction.

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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