National Investment UK PORTFOLIO MARKET REVIEW 2015 · PDF filePurchaser: Standard Life PIT Vendor: ... British Land Plc Vendor: Tesco Plc FEB ... 020 7543 6796 Mark Dansky Associate

National Investment

UK PORTFOLIO MARKET REVIEW

2015

UK PORTFOLIO MARKET REVIEW

12%

6% 18%

64bp

Total UK MARKET Transactions Total UK PORTFOLIO Transactions

Average Portfolio Size Portfolio Average Weighted Yield

2015

£86.52m2015

6.78%

2015

£54.85bnTransacted in 2,281 deals

2014

£58.60bnTransacted in 2,644 deals

2014

£13.14bnTransacted in 170 deals

2015

£10.82bnTransacted in 134 deals

QUARTERLY PORTFOLIOS SALES ANALYSIS

Q1 Q2 Q3 Q4

Total Transactions £5.18 bn

£2.37 bn

£1.40 bn

£1.87 bn

Number of Deals 40 34 27 33

Average Lot Size £133 m

£76 m

£54 m

£64 m

nOverseas Investors

nUK Institution

nUK Property Company

nPrivate Investors

nFinancial/Banks

nOverseas Investors

nUK Institution


nPrivate Investors

nFinancial/Banks

PORTFOLIO SELLER ANALYSIS

2014

30%

16%35%

6%

13%

201550%

12%

25%

10%3%

Overseas Investors20

%

UK Property Companies10%

2015

nOverseas Investors

nPrivate Investors

nUK Institution


nOverseas Investors

nPrivate Investors

nUK Institution


PORTFOLIO PURCHASER ANALYSIS

2014 53%

23%

3%

21%

201559%

20%

1%

20%

Overseas Investors6%

UK Institutions3%

2015

PORTFOLIO SECTOR ANALYSIS

Ret

ail/

War

eho

use

12

%

Leis

ure

13

%

Ind

ustr

ial

14

%

Oth

er1

6%

Mix

ed P

ort

folio

s4

0%

Offi

ce5%

Ret

ail/

War

eho

use

16

%

Leis

ure

21

%

Ind

ustr

ial

11

%

Oth

er2

6%

Mix

ed P

ort

folio

s2

0%

Offi

ce6

%

2014 2015

??%

Mixed Portfolios20%

As the UK commercial market continues to recover …the weird and wonderful portfolio names get better!

UK Portfolio Market Review

DEC

PEARL PORTFOLIOCapital Value: £165m Net Initial Yield: 5.9%

Purchaser: Standard Life PIT Vendor: Aviva Investors UK RERF

WELLINGTON PORTFOLIOCapital Value: £82.5m Net Initial Yield: 6.4%

Purchaser: DTZ Investors Vendor: Columbia Threadneedle

NEPTUNE PORTFOLIOCapital Value: £92.3m Net Initial Yield: 8%

Purchaser: NewRiver Retail Ltd Vendor: Undisclosed

LION PORTFOLIOCapital Value: £25.7m Net Initial Yield: 6.85%

Purchaser: Cordatus Property Trust / Vendor: IO Asset Management CBRE GIP

5 REGIONAL ASSETSCapital Value: £37.5m Net Initial Yield: 8.25%

Purchaser: Regional REIT Ltd Vendor: LaSalle Investment Management

NOV

SALELOCH PORTFOLIOCapital Value: £25m Net Initial Yield: 8.53%Purchaser: Under Offer Vendor: Columbia Threadneedle

LOCH PORTFOLIOLOCH PORTFOLIO

ACQUISITIONNAVIGATION PORTFOLIOCapital Value: £36.7m Net Initial Yield: 8%Purchaser: LCP Vendor: Pramerica/Waypoint

NAVIGATION PORTFOLIO

UK PORTFOLIO GUIDE 2015

Allsop 2015 Portfolio Guide


ACQUISITIONMAPLE PORTFOLIOCapital Value: £30m Net Initial Yield: 8%Purchaser: Columbia Threadneedle Vendor: Rockspring PIM Ltd

TRAVIS PERKINS PORTFOLIOCapital Value: £32.25m Net Initial Yield: 6.13%Purchaser: Connection Capital LLP Vendor: Travis Perkins Plc

3 RETAIL PARKSCapital Value: £273.6m Net Initial Yield: N/APurchaser: Connection Capital LLP Vendor: Land Securities Plc

OCT

9 INDUSTRIAL ASSETS ACROSS THE SOUTH

DIGBY PORTFOLIO

ACQUISITIONDIGBY PORTFOLIOCapital Value: £30.5m Net Initial Yield: 7%Purchaser: Columbia Threadneedle Vendor: Wildbrook Investments

NORTH WEST INDUSTRIALS Capital Value: £42m Net Initial Yield: N/APurchaser: InfraRed Capital Partners Vendor: Stretton Property Group

BENTLEY PORTFOLIOCapital Value: £132m Net Initial Yield: 7.1%Purchaser: Benson Elliot Capital Vendor: Legal & General Property

ALHRAMBRA PORTFOLIOCapital Value: £149.65m Net Initial Yield: 5.5%Purchaser: Orchard Street IM Vendor: Private Investor

SPENHILL PORTFOLIOCapital Value: £250m Net Initial Yield: N/APurchaser: Meyer Bergman Vendor: Tesco Plc

SEP

SALEPROJECT WOKCapital Value: £32.1m Net Initial Yield: 6.83%Purchaser: Westbrook Partners Vendor: Workspace Group Plc

EPWIN PORTFOLIOCapital Value: £17.85m Net Initial Yield: N/APurchaser: Blackrock UK LLPF Vendor: Investra Capital Ltd

FERNDOWN PORTFOLIOCapital Value: £112.5m Net Initial Yield: 5.25%Purchaser: Blackrock UK LLPF Vendor: LaSalle Investment Management

AUG

SALEMANALIVE PORTFOLIOCapital Value: £21.35m Net Initial Yield: 8.25%Purchaser: EPIC-REIT Vendor: Värde Partners

STEPHENSON PORTFOLIOCapital Value: £50.75m Net Initial Yield: 11.2%Purchaser: Clearbell Capital LLP Vendor: Sterling Industrial

PROJECT LENNYCapital Value: £53.15m Net Initial Yield: 4.46%Purchaser: Orchard Street IM Vendor: M&G Real Estate

PUNCH TAVERNS PORTFOLIOCapital Value: £53.5m Net Initial Yield: 13.61%Purchaser: NewRiver Retail Ltd Vendor: Punch Taverns Plc

REGATTA PORTFOLIOCapital Value: £54.85m Net Initial Yield: 8%Purchaser: Catalyst Capital Vendor: KPMG



JUL

ACQUISITIONREGIONAL OFFICE PORTFOLIOCapital Value: £13.25m Net Initial Yield: 7.42%Purchaser: Standard Life Vendor: Aberdeen Asset Management

KONA PORTFOLIOCapital Value: £28.5m Net Initial Yield: 6.38%Purchaser: BMO Real Estate Partners Vendor: Helical Bar Plc

GARDEN PORTFOLIOCapital Value: £66.3m Net Initial Yield: 8.02%Purchaser: Praxis Asset Management Vendor: Blackstone Real Estate

RAMSAY RETAIL PORTFOLIOCapital Value: £69.1m Net Initial Yield: 7.7%Purchaser: NewRiver Retail Ltd Vendor: WM Morrison Supermarkets

JUN

ACQUISITIONPROJECT SPRING (BIZSPACE)Capital Value: £135m Net Initial Yield: 10%Purchaser: Värde Partners Vendor: PWC

P R O J E C T S P R I N G

MAYFLY PORTFOLIOCapital Value: £22.9m Net Initial Yield: N/APurchaser: Legal & General Vendor: Cerberus

PRINCIPAL TRUST PORTFOLIOCapital Value: £131.1m Net Initial Yield: 7.3%Purchaser: Columbia Threadneedle Vendor: Westbrook Partners

COMPASS PORTFOLIOCapital Value: £135.5m Net Initial Yield: 6.5%Purchaser: Legal & General UK PF Vendor: Private Investor

AMBER PORTFOLIOCapital Value: £153m Net Initial Yield: 8.17%Purchaser: Clearbell Capital LLP Vendor: Aberdeen Asset Management

PROJECT GINGECapital Value: £192.1m Net Initial Yield: 7.77%Purchaser: Brockton Capital LLP Vendor: Hansteen UK IPUT II

MAY

JABLITE PORTFOLIOCapital Value: £16.5m Net Initial Yield: 9%Purchaser: Brockton Capital LLP/ Vendor: BlackRock UK Property Brydell Partners

BOURBON PORTFOLIOCapital Value: £17.3m Net Initial Yield: 4.1%Purchaser: LaSalle Investment Management Vendor: Blackstone Real Estate

APR

SPANISH PORTFOLIOCapital Value: £50.5m Net Initial Yield: 9.76%Purchaser: Cording Real Estate Group Vendor: Brockton Capital LLP

LOGISTICS ASSETSCapital Value: £388m Net Initial Yield: N/APurchaser: Blackstone Real Estate Vendor: Oaktree Capital Man

MAR

SALEGARNET PORTFOLIOCapital Value: £9m Net Initial Yield: 11%Purchaser: Tosca Fund Vendor: Kennedy Wilson

SALESAPLING PORTFOLIOCapital Value: £11.7m Net Initial Yield: 8.22%Purchaser: Waypoint Vendor: Tristan Capital Partners

SAPLINGPORTFOLIO

UNION PORTFOLIOCapital Value: £83m Net Initial Yield: N/APurchaser: LetterOne Holdings S.A. Vendor: McLaren Property



EVANS EASYSPACE PORTFOLIOCapital Value: £84m Net Initial Yield: N/APurchaser: Bridges Ventures Vendor: Regus UK

TBLH + TBLPPCapital Value: £381m Net Initial Yield: 5.2%Purchaser: British Land Plc Vendor: Tesco Plc

FEB

PROJECT SAFARICapital Value: £30.681m Net Initial Yield: 7.49%

Purchaser: Mansford LLP Vendor: PFA Acquisitions

SPARK PORTFOLIOCapital Value: £33.3m Net Initial Yield: 8.69%

Purchaser: Ares Management LP Vendor: Legal & General Property

LIBERTY PORTFOLIOSCapital Value: £37.83m Net Initial Yield: 6.43%

Purchaser: Ares Management LP Vendor: LPA Receiver

LURI 5 PORTFOLIOCapital Value: £40.934m Net Initial Yield: 8.05%

Purchaser: Ares Management LP Vendor: Banco Santander

JAN

SALEHARRIER PORTFOLIOCapital Value: £15.42m Net Initial Yield: 7.23%Purchaser: Aureus (Harrier) Ltd Vendor: Hermes REIM

A mixed use investment portfolio

Harrier Portfolio

PENDRAGON PORTFOLIOCapital Value: £230.5m Net Initial Yield: 7.25%Purchaser: W P Carey & Co Vendor: Baupost Group LLC

BISHOPGATE UNIT TRUSTCapital Value: £370m Net Initial Yield: 6%Purchaser: Legal & General Capital Vendor: Bishopsgate LT PFUT

EMPEROR PORTFOLIOCapital Value: £136.7m Net Initial Yield: 8.2%Purchaser: Harbert European RE Fund Vendor: Goodman International

EAGLE PORTFOLIOCapital Value: £60.177m Net Initial Yield: 7.9%Purchaser: Mansford LLP Vendor: InfraRed Capital Partners

MARBLE PORTFOLIOCapital Value: £110m Net Initial Yield: 10.6%Purchaser: Goldman Sachs Vendor: KPMG

PROJECT LENNY HENRYCapital Value: £60.5m Net Initial Yield: 4.85%Purchaser: Aviva Investors Vendor: Undisclosed

*Source: Property Data

Year End

Portfolio Av. Weighted Yield

All Property Av. Weighted Yield

Average UK Base Rate

GDP Annual % Change

1999 First balloon flight around the world 7.83% 6.96% 5.34% 2.90%

2000 DNA sequencing of the human genome 8.26% 7.25% 5.97% 4.40%

2001 9/11 7.61% 7.16% 5.12% 2.20%

2002 Euro becomes legal tender 7.27% 7.05% 4.00% 2.30%

2003 England wins Rugby World Cup 7.38% 6.92% 3.69% 3.90%

2004 Major Tsunami disaster 6.56% 6.41% 4.39% 3.20%

2005 Hurricane Katrina destroys New Orleans 6.04% 5.77% 4.65% 3.20%

2006 England regains the Ashes 5.62% 5.27% 4.64% 2.80%

2007 Gordon Brown becomes British Prime Minister 5.28% 4.98% 5.51% 3.40%

2008 Banks go bust and Wales win a Grand Slam 6.48% 6.12% 4.68% -0.80%

2009 Recession - Barack Obama becomes the first black president

7.10% 7.24% 0.64% -5.20%

2010 Coalition Government Win Election 6.45% 6.31% 0.50% 1.70%

2011 Royal Wedding 6.97% 6.30% 0.50% 1.10%

2012 London Olympics 7.55% 6.30% 0.50% 0.30%

2013 WikiLeaks scandal 7.84% 6.41% 0.50% 1.70%

2014 Scottish Independence Referendum 7.47% 6.07% 0.50% 3.00%

2015 New Zealand win Rugby World Cup 6.8% 5.7% 0.50% 2.4%

WHAT DOES THE PAST TELL US?

Guy Scott PlummerAssociate

020 7543 6726

Dale JohnstoneAssociate

020 7543 6796

Mark DanskyAssociate

020 7543 6813

James SalmonSurveyor

020 7543 6880

Richard LeaSurveyor

020 7543 6832

Jeremy HodgsonPartner

020 7543 6709

Scott TylerPartner

020 7543 6719

David HammondPartner

020 7543 6721

Alex ButlerPartner

020 7543 6722

Andy PointonPartner

020 7543 6720

Jonathan ButcherSurveyor

020 7543 6755

Lottie HaywardSurveyor

020 7543 6750

THE TEAM

With over 150 years’ experience, our investment teams specialise in commercial investment sales, acquisitions, and development opportunities across the UK, in the office, industrial, retail and mixed use sectors.

• National Investment Sales/Acquisitions & Development

• Portfolio Sales/Acquisitions

• Dedicated Private Client Team

SPECIALIST INVESTMENT SERVICES

All Sectors All Sizes All Sold

[email protected]

www.allsop.co.ukwww.allsop.co.uk

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National Investment UK PORTFOLIO MARKET REVIEW 2015 · PDF filePurchaser: Standard Life PIT Vendor: ... British Land Plc Vendor: Tesco Plc FEB ... 020 7543 6796 Mark Dansky Associate