Clearbell Capital has completed the £50.75m acquisition of the Stephenson portfolio from Stirling Investments, financed with a £23.75m five year senior loan from Deutsche Pfandbriefbank (PBB).
PBB’s loan is priced at 210 basis points over three-month LIBOR. The facility matures in July 2020.
The Polaris portfolio is composed of 10% office assets, 67% industrial assets and 24% of distribution warehousing. It has 23 tenants on with a total rental of £6m per annum.
The assets are located in the UK’s regions, with one asset in the South and the rest spread across the North West, North East and Yorkshire. The largest tenants include Silentnight, Jeyes, Garnett Dickinson and DavyMarkham.
Assets include: Hutton Business Park in Rotherham, PM House in Sheffield, Parkway Works in Sheffield, North West Industrial Estate in Peterlee, Units 1 and 2 Queensway, Skippers Lane Industrial Estate in Middlesbrough, and Units 2,9 & ( of Watford Bridge Mill in Stockport.
Nufarm UK is the largest tenant, accounting for £2.1m of the portfolio’s annual rent roll. Jeyes Limited is the second largest tenant, contributing £1.3m of income.
Rob West, partner at Clearbell Capital, said: “With the acquisition of the Polaris portfolio, we are increasing our industrial exposure at an attractive initial yield which is also driving cash on cash returns. This acquisition also aims to take advantage of the region’s potential, and we are able to diversify our portfolio and strengthen our long-term profitability and offering.”
Clearbell were advised by Deloitte, JLL sold the Stephenson portfolio on behalf of Stirling Investments.
Three months ago, Clearbell acquired its third south-east office asset with the £19.67m purchase of two office buildings in Reading, Atlantic & Pacific House from Lloyds TSB Pension Fund.
Clearbell is assembling a portfolio of well-connected office assets with strong asset management potential, benefiting from the so-called London ‘ripple effect’ where rental growth and yield compression is spreading from London towards the wider south-eastern region and strong regional towns and cities.
Since the fund’s launch, the Clearbell-managed fund has purchased Churchill Court in Crawley for £13.5m and One Thames Valley in Bracknell for £13m. The fund is targeting office assets in the £10m to £20m lot size range.
Reading is widely regarded as one of the strongest UK office centres outside of London, and Jones Lang LaSalle has forecast that Reading will show rental growth over the next five years at 4.9% growth pa.