Double disposal for £11.9m provides firepower for further acquisitions
The RO is pleased to announce the disposal of Phoenix House in Brighton and West Park House in Southampton, both to local authorities for in excess of £11m.
Phoenix House has been sold to Brighton and Hove City Council for £6.8m and West Park House has been sold to CIFCO Capital Limited (an investment company serving the Joint Capital Investment Strategy and Investment Fund of Babergh District Council and Mid Suffolk District Council) for £5.1m.
The sale of both properties generated healthy returns on capital and strong net initial yields and follows closely on the sale of properties in Hull and Frome.
During 2018, in line with its growth strategy, the RO has disposed of assets for a combined total of £20m which has been re-invested in new assets, development projects and strategic land across its preferred geographic region of the South of England.
The RO has further invested in developing existing assets, including Dorset Street and Waterside Place in Southampton, and in its flagship Dakota building, located in Weybridge, Surrey, which was recently confirmed as the first multi-tenanted building in Europe to receive Fitwel certification.
David Kershaw, General Manager, RO Real Estate said:
2018 was a very productive year for the RO and we are extremely pleased to have ended it on a high of well-placed disposals, exciting development projects, and awards.
Together these most recent sales and our disposals in Hull and Frome, are a testament to our asset management strategy and the trading mentality that pervades our wider business philosophy. A huge thank you to our hard-working staff, advisers and management team. We are delighted to have ended 2018 on such a positive note.
In Brighton, the RO was advised by Knight Frank and Womble Bond Dickinson, whilst Brighton and Hove City Council was advised by GVA and Winckworth Sherwood.
In Southampton, the RO was advised by CBRE and Osborne Clark LLP, whilst CIFCO was advised by JLL and Birketts LLP.