Local Retail Partnership (Spears)
A portfolio of six parades spread around the South East and along the south coast. The portfolio looked tired and required positive asset management to improve aesthetics and maximise sale price
Date
December 2000
Transaction Size
£ 50m (Total transaction size for LRP)
Principal Investor
HSBC Property Investments Ltd
Accomplishments
Enhanced income through a combination of rent reviews, lease renewals, lease restructuring and letting a number of vacant units. A significant sum of money was spent on improving the aesthetics of one parade in particular to enhance value and facilitate disposal.
The leasehold parade was sold in its entirety after rent had been maximised and the other parades were split up and sold off by private treaty or through the auction room
Exit & Returns
Sold 18 months ahead of business plan at 39% ahead of business plan exit price
IRR of 120% (levered) excluding income
