Singapore/London, 26 November 2018 – Elite Partners Capital Limited (“Elite” or “the Company”) announced today that it has acquired a portfolio of quality commercial properties in the United Kingdom from Telereal Trillium, one of the U.K.’s biggest private developers, for £282.15 million (S$508 million). The portfolio has potential for capital gains upon asset enhancement.
The Hayhill Portfolio comprises 97 freehold offices, 85% of which are located in town centres across the U.K., measuring a combined 2.6 million square feet. Approximately 99.4% of the rental income is secured against the covenant of the U.K. Secretary of State for Communities and Local Government.
The portfolio is let to the Department for Work and Pensions – the U.K.’s largest government department – on 10-year Full Repair and Insurance leases with built-in rent uplifts, which commenced on 1 April 2018 and expire on 31 March 2028.
The acquisition is the first significant transaction by Elite’s Singapore-domiciled Elite U.K. Commercial Fund, which focuses on U.K. real estate. To date, it has raised £120 million (S$216 million) in equity and mezzanine funding from more than a dozen prominent individual and institutional investors.
CEO Mr Victor Song said: “We are very pleased that our Elite U.K. Commercial Fund has been able to seize this rare opportunity to acquire a substantial core portfolio of quality offices. With attractive geographical spread, let on brand new leases to the undoubted covenant of the U.K. Government, the portfolio offers low-risk sustainable long-term yield.”
“The investors of the fund can expect strong and stable income, coupled with potential upside from rental reviews and capital gains through asset enhancements and conversion for alternate uses. We will continue to look into acquiring new assets for this fund,” he said.