The top performing unlisted UK property fund for the past five years is set to shed its remaining assets.
UBS’s Central London Office Value Added fund put its final four properties on the market in January as a single portfolio, expecting to attract bids of around £250m – a 4.8% yield.
The properties −110 High Holborn, WC1, 12 Golden Square, W1, 160 Blackfriars Road, SE1 and 4 Cam Road, Stratford, E15 – have been acquired by four separate buyers.
Background: Top performing fund plans £250m sale
Singaporean investor UOL Group has agreed to buy 110 High Holborn for £98.75m, through a wholly-owned Hong Kong subsidiary. The 110,000 sq ft office was marketed with a guide price in excess of £105.19m – a 5% yield.
UBS’s Triton Fund is understood to have acquired 12 Golden Square. The West End asset was being sold at a guide price of £51.1m – reflecting a 4.25% yield.
A joint venture between Angelo Gordon and Endurance Land is in discussions to buy the 105,935 sq ft 160 Blackfriars Road for around £74m. It was anticipated bids would be in excess of £75.25m – a yield of 4.25%.
The 39,022 sq ft Stratford office has been bought by a private UK-based individual for £16.8m – a 5.6% yield.
The total income generated by the four assets is £13m pa, reflecting an average rent of £44 per sq ft across the c.290,000 sq ft of lettable area.
Five of the nine buildings originally bought by the closed-ended fund have already been sold.
CLOVA was launched in June 2011 with £110m of equity and returned 23.4% over its life before closing in December 2015, topping the AREF/IPD Property Funds Index for total returns over five years.
Tudor Toone and Knight Frank acted for UBS; C&W advised EL and AG on Blackfriars; Gerald Eve acted for UOL Group on 110 High Holborn.
All parties declined to comment.
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