Included in the purchase are the forward purchase of two speculative industrial developments in Bicester and Markham Vale for a combined £47 million in five separate transactions. Aver has also bought two retail properties in Aintree and Southampton for a combined £40 million and two office buildings in Birmingham for £12 million.
Aver aims to invest up to £300 million in investments which provide the potential for income enhancement through skilled asset management and capital value growth from repositioning and restructuring of assets.
In Bicester, Aver has forward purchased Axis J9, a 200,617 sq ft development of five industrial buildings near Junction 9 of the M40, from Howes Lane and Albion Land. The development is on site and due for completion in September 2020.
In Birmingham, Aver has acquired two reversionary, 10-storey office buildings on the Great Charles Street Estate, close to the Paradise and Arena Central regeneration schemes on the northern edge of the city centre, from Angelo Gordon and Dunedin Property. The buildings, Charles House and 154 Great Charles Street comprise respectively 33,446 sq ft and 33,636 sq ft, of which a third of the space is vacant.
Martin Jepson, co-founder of Ergo Real Estate, said: “These six properties are excellent additions for the partnership. They provide a good mix of geographical and sector diversification and take the Funds committed capital to around £130 million”.
“The speculative industrial developments are in areas of strong demand and low supply, and we are confident they will lease well, whilst the two office properties in Birmingham provide an attractive repositioning opportunity off low rents”.
The five investments follow Aver’s first transaction at the beginning of this year, which was the acquisition of 2 Brindley Place, a prominent 78,000 sq ft office building on the Brindley Place estate in Birmingham, from Hansainvest for £29.25 million, which reflected a net initial yield of 6.5%.