Addington Capital, the property investment and asset management specialist has sold Drake House, Derry’s Cross, Plymouth PL1 to a private investor for the asking price of £4.65 million. The price reflects a net initial yield of 9.36% and a capital rate of £137 psf.

Drake House is a 33,887 sq. ft prime leisure investment located within Plymouth city centre and is fully income producing to strong covenants, with tenants including national and well-regarded brands such as Grosvenor Casinos, Walkabout and Marston’s  who provide a passing rent of £463,905 pa.

The building is a modern build, constructed in 2002 and located on the prime leisure circuit in Plymouth. Neighbouring occupiers include Travelodge, Revolution, Wildwood, Bella Italia, Wetherspoons and Theatre Royal. It is in the heart of the city  and its surrounding area is undergoing a major transformation with many commercial, student and residential developments under construction or recently completed.

The building also has Immediate access to significant local car parking, including a 71-space car park to the rear of the property and the 612 space Theatre Royal multi-storey car park behind Derry’s Cross.

Matthew Allen, Principal of Addington Capital said, “We have actively asset managed Drake House since we acquired it in February 2016 in joint venture, and we are now at the end of the planned investment cycle. We’ve attracted some well-known household names as tenants and are delighted to receive the full asking price for this property.”

Plymouth is the second largest city in the Southwest and is widely renowned for its maritime history and its association with being an international seaport. It has  a population of 259,200 (ONS 2013), making it the 15th largest city by population in the UK. Plymouth’s dominance within the southwest has resulted in very little competition from surrounding retail centres and the city has seen a number of new retailers opening stores, including Jack Wills, Joules and White Stuff.

Allsop and C&W advised jointly for the vendor.

Posted in Uncategorized on 6th May, 2022

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BauMont Real Estate Capital (BauMont) and its operating partner Addington Capital have acquired a residential portfolio from a private investor. The portfolio consists of 318 houses and apartments in East London, which are primarily leased to young professionals and families.  The portfolio has been acquired for £99 million.

This deal is a follow-on for BauMont and Addington, who together acquired a portfolio of 182 apartments of mainly converted Victorian and Edwardian houses mostly in the borough of Croydon, South London for around £37million in October 2019.

The new portfolio acquisition is in Walthamstow and surrounding areas including Leyton, Leytonstone, Barking and South Woodford. It includes both Victorian and post war accommodation, as well as purpose-built apartments on the sought-after Warner Estate built at the turn of the last century. Walthamstow itself is popular due to its strong transport links to Central London, local parks and wetlands and increasingly fashionable bars and restaurants.

Addington’s sister company AddLiving, the residential management business, will provide property management services to the portfolio, with Addington Capital as asset manager.  The properties will be held for income and capital growth and refurbished to improve energy efficiency and to meet the requirements of the generation of people moving into this area of East London which is driving the ongoing gentrification.

Harry Wentworth-Stanley at BauMont, said: “Given its characteristics, the portfolio will be resilient and offer well-located, good quality and affordable homes in an undersupplied segment of the market. We are delighted to be working with Addington again who are experienced in managing this type of portfolio and have an excellent track record.”

Matthew Allen, Principal of Addington Capital said: “We are continuing to look for value-add opportunities in the Greater London residential markets, where we can achieve portfolio discounts and can invest to modernise and improve the living accommodation. We are primarily looking at typically older stock (Victorian or pre-war) in Zones 3-6 and in emerging and gentrifying locations.”

“The Greater London market still offers strong fundamentals. The shortage of housing at affordable price points in London remained acute throughout the pandemic and is likely to become more severe as the capital recovers in 2022 and beyond. We are delighted to be working again with the BauMont team in pursuing this strategy.”

Montana Investments advised the purchaser.

Posted in Uncategorized on 21st February, 2022

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The founders of Addington Capital, Martin Roberts and Matt Allen have recruited Stephen Wilson as the new Operations Director of Add Living, Addington’s sister residential lettings and management business.

Stephen joins AddLiving from Touchstone where he was as Associate Director, leading a team across multiple residential sites in London and the South East. Prior to that he was a Portfolio Manager at Touchstone, managing a team of 9 to look after 1,100 residential properties and 15 commercial properties in London. Before joining Touchstone in 2017 Stephen had worked at residential agents Citystyle Living Ltd.

Stephen’s recruitment to AddLiving comes hot on the heels of appointing James Curry from Daniel Watney as a new residential property manager. These new appointments take AddLiving to a team of 10.

AddLiving was set up in 2018 as a management and leasing platform for large PRS sites and portfolios in Greater London, acquired in joint venture. AddLiving has its own website and web-based management and leasing portal.  It is an independent company capable of taking on third party mandates.

Martin Roberts, Director, said, “We are delighted to welcome Stephen to spearhead our residential lettings and management business.  He has a strong track record and experience which will enhance our property management expertise.”

“Addington has a history of both acquiring residential properties with its JV partners or acquiring and converting other use classes into residential property.  We have acquired over 2,100 residential properties in most major towns and cities across the UK since we set up the business.”

Matthew Allen, Director, continued, “Addington is looking to acquire further residential property portfolios with our JV partners, including further PRS schemes. Having our own residential management and lettings platform gives us the control we need to ensure the delivery of successful investment strategies in the residential sector.”

Posted in Uncategorized on 18th November, 2021

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Addington Capital, the property and investment asset management specialist has let 2,100 sq. ft of office space on the 2^nd floor at the former Elbow Rooms, 64-68 Call Lane in Leeds to North Property Group.  The new tenant has signed a 5-year commitment at £25 per sq. ft. Carter Towler and CBRE acted for the landlord.

Addington has now instructed Cushman & Wakefield to market the investment for sale with a quoting price of £4.00 million (8.00% NIY / £168 CV psf).

Addington acquired the 24,000 sq. ft property out of receivership, in partnership in 2016. It obtained consent for a change of use to offices and refurbished the second and third floors whilst retaining the locally well-known Elbow Rooms branding.

The basement, ground floor and first floor are let to Revolution de Cuba, the popular Cuban tapas cocktail bar. The third floor (4,500 sq. ft) is fully let to Parallax, a fast-growing digital agency headquartered in Leeds.

Philip Symonds, Partner at Addington Capital said, ”Once stripped back, the characterful upper floors enabled us to design and deliver much-in-demand creative and modern office accommodation. Leeds has a growing innovative and enterprising local economy, and we are delighted to have harnessed this demand to attract a vibrant array of tenants.  The property presents a rare freehold mixed-use investment opportunity in the lively heart of Leeds at an attractive price.”

Posted in Uncategorized on 16th November, 2021

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Addington Capital, the property investment and asset management specialist has let the top ninth floor of 10 Fleet Place, London EC4 to Interpath Advisory, the independent financial advisory business which was formed in 2021 following the sale of KPMG’s UK Restructuring business to H.I.G. Capital.

Interpath is taking 13,913 sq. ft. of office space on a ten-year lease, with an option to break after 5 years. The rental level agreed is confidential. The space will become Interpath’s UK headquarters, and be home to its 250-strong London-based team.

The agents are Ingleby Trice for the landlord and C&W for the tenant.

Interpath joins other blue-chip tenants in the building including Mott MacDonald, the global engineering consultancy and CNBC, recently acquired by Comcast and Verizon Group.

10 Fleet Place is a landmark 185,000 sq. ft office building in prime Mid-Town. Addington Capital is the asset manager for the property on behalf of its Hong Kong-based owners who acquired it in 2015.

The letting follows substantial refurbishment and capex improvements at 10 Fleet Place in the first six months of 2021, including a contemporary CAT A finish, reception upgrade and conversion of the basement area to create male and female changing rooms, including 17 showers and 167 tenant lockers. Planning consent has been achieved to create new secure bike storage facilities, delivering 167 covered bike parking racks including electric charging points, which are all BCO compliant. The works also include new external signage and lighting around key entrance points to the building.

The building also benefits from great transport links, with Thames Link, St Pauls, Blackfriars, Farringdon and Chancery Lane stations all located within very close walking distance.

Blair Nimmo, chief executive of Interpath Advisory, said: “In hunting for our new UK headquarters, we were looking for a building which could deliver a state-of-the-art, flexible working environment, right in the heart of the City, where collaboration and innovation can flourish. At 10 Fleet Place, we have found exactly that. We look forward to welcoming our people and our clients to our new home later in the Spring.”

David Dalrymple, Partner at Addington Capital said, “We have invested during the pandemic to vastly improve the internal finishes and amenities at 10 Fleet Place and the changes we are making have made the building significantly more attractive to occupiers. Feedback so far has been very positive.

“Our investment appears to be paying off. We are delighted to secure this letting to Interpath and are looking forward to attracting further high calibre tenants to the building.”

Ingleby Trice will continue to market the building at a rental level of around £69.50 psf. Up to 60,000 sq. ft of CAT A office and 2,905 sq. ft of ground floor retail space is currently available to let.

Interpath Advisory currently has four offices located across the UK in Edinburgh, Reading, Aberdeen and Nottingham. In addition to its new premises in London, a further six offices are set to open in Manchester, Leeds, Birmingham, Glasgow, Bristol and Newcastle over the coming months.

Posted in Uncategorized on 9th November, 2021

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