90 North Real Estate Partners LLP (“90 North”), acting as Property and Investment Adviser and Sidra Capital acting as Strategic Adviser, have sold Riverside East – UK law firm Irwin Mitchell’s UK Headquarters in Sheffield – in a transaction worth £24.65M. The buyer is the Corum XL Fund.
The property was built in 2005 and provides 119,000 sq ft of Grade A office accommodation, arranged over ground and six upper floors and is within walking distance of Sheffield City centre. The property is Irwin Mitchell’s UK Headquarters housing approximately 700 staff.
The property was originally acquired in January 2016. The sale price represents a net initial yield of 6.32%.
RY Partnership and BNP Paribas Real Estate acted for the seller. Danesborough Properties acted for the buyer.
Edward Gibbon, Senior Asset Manager at 90 North, commented: “We are pleased with the successful sale of the asset in the face of difficult market conditions against the backdrop and uncertainty of Brexit. Irrespective, the sale crystallised an attractive income return for the Investors, including the Partners of 90 North, over the investment period.”
Richard Talbot-Williams, Senior Director, Investment at BNP Paribas Real Estate, commented: “It’s encouraging to have concluded another successful exit on behalf of our long-term clients 90 North and Sidra.”
Nick Judd, Founder and Head of Placement & Investor Relations at 90 North, commented: “We believe that the current uncertainty surrounding Brexit will subside and Sterling will rebound – it is relatively cheap right now at around £1:$1.30, 11.5% below the 10-year average of £1 : $1.47. Most Brexit risk is already priced into the market. Inflation remains subdued, falling to 2.1% in December, just above the Bank of England’s 2.0% target, further reducing the chance of interest rate increases. On a five-year horizon, the UK is one of the most attractively priced markets in wider Europe.”
Hani Baothman, Vice Chairman, Sidra Capital commented: “The UK is a key market for us and we are very pleased to have finalised the sale of this property according to plan. We successfully navigated the country’s economic climate even as conditions changed due to current political developments. We also furthered our reputation as a trusted adviser to GCC investors by establishing a well-regulated and professionally managed platform to invest in UK-based income-generating assets.”
The sale starts a busy 2019 for 90 North with acquisitions and further exits progressing across the UK, Continental Europe, USA and Australia.