Värde advised by APAM buys UK secondary retail portfolio

As announced earlier funds advised by Värde Management LP (“Värde”) have completed the purchase of a portfolio of 235 retail and mixed use assets from The Local Shopping REIT plc (“LSR”).
The portfolio has a value of about £80 million and produces a current rent roll of just over £7 million per annum. Under the terms of the acquisition the purchasers are acquiring the properties with the benefit of an existing loan of about £57.7 million arranged through a CMBS structure at a fixed rate of 5.6%, maturing in January 2017.
The properties are located in urban and suburban centres across the UK with a locational bias to London and the South East in aggregate it comprises about 750,000 sq ft of commercial space with a further 100 or so residential units.
APAM acted for Värde as property advisor for the acquisition and portfolio due diligence and have been retained as Asset Manager for the acquired assets. Allsop acted for LSR.
Commenting on APAM’s role Simon Cooke a founder shareholder of APAM said:
“This is a portfolio based on convenience retail with a diversified and resilient income stream. It will provide Värde with an attractive income return on equity which will further improve as APAM’s experienced asset management team focus on letting up the vacant space to improve net operating income and deliver latent value from change of use, revised planning and development . The steady recovery in household income will further drive some rental growth across the portfolio. ”

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