Europa Capital, the pan-European real estate investment manager together with joint venture partner Addington Capital have sold the Lancelot portfolio, a portfolio of 29 residential properties let on statutory tenancies and located predominantly in London and the South East, to Mountview Estates Plc for £10.6 million.

The properties comprise 17 houses and 12 flats all leased on Regulated, Assured and Life tenancies, providing a current gross rent of £261,243 per annum.

The properties were acquired by the joint venture in October 2018 as part of the Project Merlin acquisition – a portfolio of mostly old housing stock in Greater London comprising 202 units (43 houses and 153 flats) for £55 million. Addington Capital has been asset managing the properties since with its sister property management and leasing company, AddLiving, providing property management.

Matthew Allen, Principal at Addington Capital said, “As a standalone regulated portfolio, Lancelot presented a relatively rare opportunity to acquire these kind of reversionary interests in bulk. The last of these statutory tenancies were created in 1989 and so there’s a dwindling supply. We ran a competitive process and Mountview, as a specialist buyer, is very familiar with the kind of stock and was a reliable counterparty.

We have been actively managing the Merlin portfolio since acquisition, looking for opportunities to re-package the properties and enhance value.”

Tim Theakston and Adam Kerven at Allsop acted for the vendor.

Posted in news on 30th June, 2022

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Addington Capital, the property investment and asset management specialist has let the seventh floor and part of the eighth floor of 10 Fleet Place, London EC4 to Hogan Lovells International LLP, the top ten global law firm.

Hogan Lovells is taking a total of 33,112 sq. ft which comprises of 19,858 sq. ft, the whole of the seventh floor plus 13,254 sq. ft of the eighth floor. The property has been let on ten-year leases, with  options to break after year 5, at a headline rent of £67.50 per sq. ft.

Hogan Lovells is taking the space because it is conveniently located close to the major pre-let it has signed on Holborn Viaduct, London EC1.

The agents acting on the deal were Ingleby Trice for the landlord and Cushman & Wakefield for the tenant.

Hogan Lovells joins other blue-chip tenants at 10 Fleet Place. The deal comes hot on the heels of Addington Capital’s letting of the ninth floor in the building to Interpath Advisory, the independent financial advisory business In November 2021. Other tenants in the building include Mott MacDonald, the global engineering consultancy and CNBC, acquired last year 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 the Crosby Group from Hong Kong 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 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. The Elizabeth line at Farringdon is now open and fully operational.

David Dalrymple, Partner at Addington Capital said, “We invested during the pandemic to vastly improve the internal finishes and end of trip facilities at 10 Fleet Place to make the building significantly more attractive to occupiers. Our investment appears to be paying off and feedback from Hogan Lovells suggested that they are pleased with what we have done, particularly with the reception, new changing facilities and external signage. Hogan Lovells also wished to be in a building with strong ESG Credentials with a minimum EPC rating of a B. We are glad that the space they are taking meets these criteria.”

“We are delighted to have secured this letting to such a prestigious tenant and are looking forward to attracting further high calibre tenants to the building.”

Ingleby Trice and Savills continue to market the building at a rental level of around £67.50 psf. Up to.39,719 sq. ft of CAT A office and 4,111 sq. ft of ground floor retail space is currently available to let.

Posted in news on 27th May, 2022

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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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