19 November 2018
Telereal Trillium announces that it has completed the sale of its Hayhill Portfolio of regional offices to Elite UK Commercial Limited for a total consideration of £282.15 million. The 2.6m sq. ft. portfolio has a combined annual rent of £23.29m.
The Hayhill Portfolio comprises a UK-wide portfolio of 97 regional offices, let to the Department for Work and Pensions (DWP) on new, 10-year FRI leases, commencing on 1 April 2018. The properties, 85% of which are located in town centre locations, are let at newly agreed market rents, subject to CPI-linked rent reviews.
Significant interest from the marketing of this high quality, secure income portfolio, has resulted in a successful bid from Elite UK Commercial Limited, which is a subsidiary of Elite UK Commercial Fund.
The sale of the Hayhill Portfolio represents the second major transaction Telereal Trillium has completed in recent weeks, following its £1.46bn acquisition of Network Rail’s commercial estate in partnership with Blackstone Property Partners.
In line with its business strategy, Telereal Trillium will look to invest the equity released by the Hayhill sale in the ongoing rebalancing its portfolio, as the company continues to invest across the UK in the office, industrial, residential development, and strategic land sectors, deploying its asset management capabilities to create value.
Graham Edwards, Executive Chairman at Telereal Trillium, said:
“We are delighted to complete the sale of the Hayhill Portfolio to Elite UK Commercial. The high level of interest in this well diversified portfolio from both UK and global buyers is a positive sign for the UK property market, and testament to the quality of the covenant strength on offer.”
Victor Song, Managing Director at Elite Partners Capital Pte – the investment manager of Elite UK Commercial Fund - said:
"We are very pleased with the acquisition of the 97 freehold commercial assets that are let on long leases to the undoubted covenant of the UK Government, delivering a strong and sustainable yield. We look forward to acquiring more of such assets to grow the portfolio.”
CBRE and Reed Smith acted for Telereal Trillium. Goldenberg Real Estate, Eversheds Sutherland, and EY advised Elite.