GCW delivers APAM investment deal

February 2016

US-based Varde purchased the Toucan and Peacock retail portfolios from Royal London Asset Management. The two portfolios were marketed separately and were comprised of 14 properties with an annual rent approaching £4 million. GCW secured both the portfolios with one offer.

“This is the type of deal that GCW is all about. Our cross-disciplined, specialist retail advice coupled with our knowledge of regional towns helped to identify that in many of these assets there was an occupational angle to drive value” says GCW director James Pearson.

The two funds have different characteristics. The Peacock range of properties offers well-let secure income and the Toucan portfolio offers income from premium shops in very good towns. The two portfolios also offer an extra dimension to APAM’s existing UK acquisitions, offering a varied income profile and improved quality of income from tenants.

The Peacock portfolio is made up of six properties in Barnsley, Hull, Leeds, Lincoln, Nottingham and Reading. It is well-secured to a number of strong covenants including Lloyds Bank, Boots, HSBC Bank and Nero Holdings with a current rental income just over £2 million pa.

The Toucan portfolio is made up of eight properties in prime, popular, pedestrianised retail pitches within eight dominant cities and towns across the UK including Colchester, Reading, Manchester, Winchester and Cardiff. The properties are well-secured to a variety of leading national retailers including Fat Face, Superdrug, Office and Monsoon. Total rental income is £1.75 million pa.

Contact james.pearson@gcw.co.uk