Riverside Capital and Connection Capital together with the Cubic Property Fund which is listed in the Channel Islands,have acquired an 81.86% stake in Merchant Property Unit Trust “IMPUT”, which owns a portfolio of 35 trade park units in the UK that are let to building merchants Travis Perkins. The remaining minority stake is held by Travis Perkins and Colliers International.
Connection Capital clients have invested £5.8m of equity with the balance of £6.5m provided by the Cubic Property Fund. Senior debt of £21.695m was made available by Royal Bank of Scotland to refinance the portfolio, arranged for Riverside Capital by Altea Partners.
The portfolio acquired under the deal totals 449,398 sq. ft. producing an annual rent roll of £2.3m.The 35 units within the portfolio are based in well established locations across the UK with leases that are not due to expire until December 2031, leaving 18 years remaining with no breaks.
The investment will be monitored by Riverside Capital going forward.
Travis Perkins is a FTSE 100 company specialising in the builders’ merchant and home improvement markets, and is a main supplier to the building and construction market. It supplies more than 100,000 product lines to trade professionals and self-builders from over 600 properties throughout the UK.
Andy Taylor, Director at Riverside Capital, said: “We are very pleased to have been able to secure this attractive and geographically diverse income producing portfolio let to a fantastic tenant with minimum fixed uplifts.”
Claire Madden, Partner at Connection Capital, said: “This is another excellent deal for our clients and demonstrates the range and diversity of our investments. Due to our ability to source deals like this through our great relationship with Riverside Capital, our clients can benefit from acquiring assets at keen prices.”
Eric Mounier, Director of Cubic said: “Cubic are delighted to have joined forces with Riverside in acquiring into this strong real estate portfolio. This continues Cubic’s strategy of investing in high quality, long term income streams with excellent growth prospects and represents a welcome re-entry into the UK market.”
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