Mayfair-based Investment Manager Accrue Capital has acquired a mixed use property on Buchanan Street, Glasgow for £17.2m, in an off-market transaction. The former Nationwide Building Society branch has been recently repositioned and now comprises a brand-new flagship restaurant let on a long lease to The Ivy, two prime retail units let to Edinburgh Woollen Mill and Thomas Pink and office accommodation let to Nationwide as part of a sale and leaseback arrangement. The acquisition reflected a net initial yield of 4.75%.
Accrue Capital has also completed the sale of The Riverside Distribution Centre in Dundee for £6,500,000. The property originally formed part of Accrue’s Harwood Portfolio which it acquired for £48m in 2017. The sale reflected a net initial yield of 4.62%.
Giles Patterson, Investment Director of Accrue Capital, said:
“These transactions reflect our strategy of seeking opportunistic acquisitions, whist realising value following the implementation of asset management initiatives. It also demonstrates our capability to execute complex transactions off-market and our desire to acquire single asset properties as well as portfolios.
“We believe that the Buchanan Street asset is a compelling acquisition for us. The property is located in a prime position on Buchanan Street, which remains one of the most proven retail destinations in the UK, and has a long-term contracted income secured against tenants of a strong financial standing. We also expect to deliver several asset management opportunities in the medium term to enhance value.”
GLJ Property advised Accrue Capital and LSH advised Nationwide Building Society.