Neighbourhood Retail Partnership
A portfolio of three neighbourhood retail centres and four retail parades, spread around the South East and Wiltshire
A combination of national multiple retailers and local independent tenants occupied the properties
The properties had large vacancies and absentee tenants, as well as suffering from years of poor management
Date
1998
Transaction Size
£ 20m
Principal Investor
GE Capital
Accomplishments
For the parades, value was added by extending leases, letting vacant units, carrying out rent reviews and lease renewals. Exit value was achieved through selling parts off and, where appropriate, selling the parades as a whole
The centres were worked hard to maximise value. This included: taking surrenders of leases from tenants who were no longer in occupation and receiving reverse premiums which enabled control over future lettings completing various lettings, including Fitness First Plc for 25 years after receiving a substantial reverse premium from Waitrose for surrendering their lease
We maximised rental flow through rent reviews, lease renewals and lease restructuring
Repairs were carried out to put the building back into good order, also lighting quality was upgraded and signage improved
Exit & Returns
Rental income increased by 17%
IRR of 32% (levered) excluding income
