The plans for Vicarage Walk will see the long vacant Mothercare and former Internacionale shops redesigned to form one large unit.  Benson Elliot and its award-winning architects, Allies and Morrison, have worked closely with the Council to prepare sensitive, high-quality designs that are both fresh and exciting while complementing the area’s historic surroundings.

The proposed 15,000 sq ft unit, around twice the size of New Look, will bring a new high street brand to the shopping centre, which currently includes Primark, BHS, Marks & Spencer, River Island, Monsoon, USC and Topshop.

Peter Cornforth, Director of Retail at Benson Elliot, said: 

“This investment is the first step in our commitment to improving the Quedam, by bringing fresh and fashionable vitality to Yeovil and giving south Somerset shoppers a great reason to visit the town centre.  We’ve designed the project to fit with the Council’s policies of supporting in-town retail development and see that as a vital part of attracting new investment and key retail brands to Yeovil. Town centres are the heart of our communities and we want this proposal to act as a catalyst for further improvements.”

Western Gazette

Benson Elliot, the UK-based private equity real estate fund manager, has sold Cambourne Business Park (Phase 2000), near Cambridge, to Coal Pensions Properties Limited. The sale comes less than one year after Benson Elliot purchased the property from Aviva Investors as part of the firm’s £1 billion “Reach for the Regions”.

Benson Elliot completed a refurbishment programme of the three multi-let, high specification office buildings, which provide 130,000 square feet of accommodation and 549 car parking spaces in an attractive 7.6 acre landscaped park. The refurbishment programme included the upgrade of the common areas and the rebranding of the buildings to ‘The Twenties at Cambourne Business Park’.

Marc Mogull, founder and Managing Partner of Benson Elliot, said:
“We anticipated a significant upswing in demand for high quality regional assets in the UK, hence our early entry into markets such as Birmingham, Cambridge, Ealing, Manchester, Milton Keynes and Reading. The sale of Cambourne Business Park validates that thesis, and will deliver a strong return to our investors.”

Coal Pension Properties Limited were advised by LaSalle Investment Management and JLL.

Benson Elliot, the UK-based private equity real estate fund manager, has announced the promotion of Ken MacNaughton, CFO, and Philipp Braschel, Principal for Germany, to Partner. These partnership appointments strengthen the firm’s experienced senior management team, currently comprised of Marc Mogull, Trish Barrigan, Joseph De Leo and Phil Irons.

Ken has over 14 years of experience as a Chief Financial Officer and joined Benson Elliot in 2009 after working for Cambridge Place Investment Management and Security Capital European Realty. Ken has developed a prominent role in the industry as it navigates an increasingly complex financial and regulatory environment. At Benson Elliot Ken oversees the Finance and Legal teams, and also serves as the firm’s Compliance Officer. He is responsible for financial reporting, tax, fund level financing and fund structuring, and plays an integral role in the investments made by the Benson Elliot funds.

Philipp joined Benson Elliot in 2009 from Goldman Sachs’ Real Estate Principal Investment Group where he was an Executive Director. Philipp has 14 years of industry experience and, over the course of his career, has been involved in the acquisition of c. €4.5 billion of property assets. Philipp directs Benson Elliot’s investment activities in Germany, a market in which the firm has been particularly active during the past few years. Recent activity in Germany includes the sale of the Silvertower Berlin residential portfolio, which achieved a 2.1x equity multiple in less than three years, and the purchase of the Turmcenter, a 23-storey office tower in Frankfurt’s central business district. Benson Elliot plans to comprehensively redevelop the tower to tap into the growing demand for high quality office space in central Frankfurt.

Marc Mogull, Managing Partner, Benson Elliot, said:
“Ken and Philipp have made significant contributions to the success of Benson Elliot’s business, and I welcome both of them to the partnership. Their promotions demonstrate their long-term commitment to the firm, and their expertise will be invaluable as we seek to maximise returns for our investors and grow the Benson Elliot platform.”

Benson Elliot, the UK-based private equity real estate fund manager, has signed its second blue chip tenant at its 20,700 sqm (222,800 sq ft) Cornerstone office development in Barcelona, Spain.

Henkel, the German manufacturer of household products including Sellotape, Persil and Pritt adhesives, has agreed a 10 year lease on 6,423 sqm (69,137 sq ft) of space for its new Spanish HQ. Henkel will occupy the ground to fifth floors of Building C from the beginning of 2015.

In March 2014 Benson Elliot announced that it had agreed the largest letting in Barcelona for more than a year when ADP, a global leader in outsourced services and human resources, took nearly 6,800 sqm (73,200 sq ft) of space in Building B. The new letting to Henkel brings occupancy at the building to 64 per cent, only 6 months after completion.

Benson Elliot was one of the few investors willing to make a significant commitment to the Spanish real estate sector in 2011, when the firm agreed to forward purchase the Cornerstone office development from Solvia, a Banco Sabadell subsidiary, in joint venture with Barcelona-based Bream Real Estate. In an increasingly undersupplied Barcelona office market, Cornerstone is the only major new project with Grade A space ready for occupation in 2014.

Cornerstone was conceived with occupiers in mind; its three buildings, set in a 2,100 sqm communal plaza, offer efficient, open-plan floor plates in the heart of Barcelona’s modern business district of Poblenou. Cornerstone was awarded Barcelona’s first ever LEED Gold certificate for an office building, with sustainable features including locally sourced materials, free electric vehicle charging and DALI intelligent lighting controls.

Trish Barrigan, Senior Partner at Benson Elliot, commented: “The letting to Henkel underpins our decision to move into the Spanish market at a time when others feared to tread. Henkel is a major international business, with a strong covenant, and we’re pleased to welcome them to Cornerstone. Occupier interest continues to be strong, and we anticipate making further letting announcements in the near future.”

Western Gazette

Benson Elliot, the UK-based private equity real estate fund manager, has pre-let 50,000 sq ft of office space at CBX II, its 150,000 sq ft mixed-use scheme in Milton Keynes. The lettings bring occupancy to c. 80 per cent, and evidence the growing demand for high quality regional office accommodation.

Electronics company Ingram Micro has taken 30,000 sq ft over 3 floors at the Midsummer West building on a 10-year term. Ingram Micro, a US-based Fortune 500 company, is the world’s largest wholesale technology products distributor, sourcing products from prominent manufacturers such as Acer, Apple, IBM and Microsoft.

New Era, the American fashion brand, has leased 20,000 sq ft across the first floor of Midsummer East and Midsummer West, also on a 10-year term. Established in 1920, New Era is the exclusive manufacturer of the official on-field caps worn by every Major League Baseball team and their minor league affiliates. The company produces more than 35 million caps per year and has quickly become an iconic fashion brand in the UK.

Philip Irons, Partner, Benson Elliot, said:
“Welcoming two substantial American companies that are both leaders in their fields is a ringing endorsement for our refurbishment strategy at CBX II. It reinforces the trend that we are seeing of growing demand for high quality office accommodation in the regions, particularly in locations like Milton Keynes that offer fast access to London and other major UK cities.”

Prominently located within the Central Milton Keynes Business District, CBX II is a modern, mixed-use development comprising c. 150,000 sq ft of office and retail space. Office accommodation is split over three buildings on Midsummer Boulevard – Midsummer East, Midsummer West and Midsummer Court. Benson Elliot acquired CBX II in March 2010 with a view to increasing occupancy through an active asset management programme, capitalising on anticipated demand for quality space in the regions. Other tenants in CBX II include Regus, Global Radio and All Bar One.

Benson Elliot was advised by XLB, CBRE, Bidwells and Louch Shacklock.

Estates Gazette

Benson Elliot, the UK-based private equity real estate fund manager, announces the acquisition of the Imaginalia shopping centre in Albacete, Spain from funds managed by AXA Real Estate.

Benson Elliot is planning a major capital expenditure programme to transform the c. 45,000 sqm shopping centre, tapping into increasing consumer demand as Spain accelerates its recovery from recession. Completed in 2006 by Spanish developer Procom, Imaginalia benefits from limited local competition. The centre is currently 82% occupied by a mix of 33 tenants, with major tenants including Alcampo (hypermarket), Media Markt (consumer electronics), Yelmo (cinema) and Toys R Us (toys). The centre provides surface and underground parking for 2,100 cars.

Albacete, in the autonomous community of Castilla-La-Mancha, is a regionally dominant city with a diversified economy and a growing population of 172,000. It lies halfway between Madrid and the Valencia/Alicante coast. Albacete is seeing population and economic growth on the back of Spain’s economic recovery. In its latest country report on Spain, the International Monetary Fund observed that the Spanish economy had “turned the corner” and, of particular relevance to Imaginalia, that “private consumption is rebounding”.

Trish Barrigan, Benson Elliot Senior Partner, said:

“We were an early entrant into the Spanish market, as past experience in the country gave us the confidence to anticipate a return to economic growth and a recovery of the Spanish consumer. Imaginalia already attracts nearly four million visitors each year, and we believe our plans for the centre – as the Spanish recovery accelerates – will drive those numbers significantly higher. We are encouraged by the enduring commitment Imaginalia’s key tenants have shown to the centre through a tough economic environment.”

Benson Elliot has a strong in-house retail team, who will oversee the re-configuration and re-positioning of Imaginalia. We expect to make Imaginalia a more vibrant retail destination, in part by enhancing the leisure offer. Initial conversations with potential occupiers have given us confidence that there is significant demand amongst retailers to be present in a rejuvinated Imaginalia.”

Benson Elliot entered the recovering Spanish market in 2011 with its Cornerstone office development project in Barcelona. Within seven months of handover Benson Elliot had signed two significant leases, with business outsourcing solutions provider ADP and leading German consumer products company Henkel taking overall occupancy in the scheme to 64%.

International real estate consultant Cushman & Wakefield acted as advisers to Axa Real Estate.

Contracts were exchanged today, and the deal for the 108,000 sq ft Grade A building – which has a BREEAM ‘Excellent’ rating – is due to be completed in the next three weeks.

James Heather, Partner at Argent, said: “Benson Elliot’s unsolicited approach to purchase Eleven Brindleyplace led us to consider the future of our ownership and highlighted the growing interest and confidence in the regional office market.

“Our decision to now sell the building is both a response to the improving market conditions and also provides the opportunity to fully concentrate on the growing momentum for our Paradise Circus scheme in Birmingham which is due to start on site later this year.

“Eleven Brindleyplace has a track record of attracting many well-respected and valued occupiers, who have chosen to locate their businesses within an actively managed building. We are pleased to be able to announce that Colliers have recently extended the term of their lease within Eleven Brindleyplace and will shortly commit to a full refurbishment of their demise. We are confident that Benson Elliot will continue to develop the offer and will maximise the opportunities the building presents.”

Since its construction in 2009, Eleven Brindleyplace has proven to be a successful building, offering floorplates of around 8,500 sq ft to occupiers with requirements for smaller, high quality office accommodation. In 2010 Eleven Brindleyplace was named ‘Best of the Best National Commercial Workplace’ by the British Council for Offices.

James Jakeman, Principal at Benson Elliot, said: “Eleven Brindleyplace is a signature building with an existing list of prestigious tenants from across the professional services sectors. It is a substantial investment asset and a welcome addition to our portfolio.

“With its focus on smaller, high quality floorplates, Eleven Brindleyplace represents a unique proposition within the Birmingham office market. Its location on a managed, mixed-use estate puts amenities and public transport links on its doorstep. We are very pleased that we have been able to come to an agreement with Argent.”

Eleven Brindleyplace features a number of innovations, including Meetingspace, which offers state-of-the-art, internally-managed meeting room facilities and a stylish business lounge. These facilities are open to use by all building tenants, removing the need for them to incorporate meeting rooms into their floorplates.

Current occupiers at Eleven Brindleyplace include Allegis, Capita, Friend LLP, Global Radio, Hettle Andrews & Associates, Robert Walters, TEK Systems & Aston Carter, the West Midlands headquarters of the Institute of Directors, Colliers International and Argent.

Benson Elliot was represented by GVA in the sale, with GBR Phoenix Beard acting on behalf of Argent. Benson Elliot has appointed Cube Real Estate as asset manager.

For more information, visit www.elevenbrindleyplace.co.uk

The acquisition adds another high quality regional asset to Benson Elliot’s UK office portfolio, a further demonstration of its ongoing commitment to its strategy of investing in regional office assets.

UK & European Investments completed the development of this Grade A BREEAM Excellent office building in 2009, offering 122,000 sq ft of office space over six floors. The floorplates of 22,000 sq ft are well-suited to meet local demand from mid-sized occupiers and are easily divisible to accommodate tenants from 5,000 sq ft upwards. Benson Elliot will undertake a modest refurbishment of the building before re-launching it to the market.

James Jakeman, Principal at Benson Elliot, said:
“We are pleased to have worked with UK & European on this transaction. This opportunity bears all the hallmarks of the kind of investment Benson Elliot is striving to make in the UK – a high quality asset that located in a recognised business location with strong and improving transport links. We continue to believe in the investment case offered by key regional office markets across the UK.”

Barney Kelham, UK CEO of UK & European, said:
“This has been a successful off market transaction and we are delighted with the result achieved. We feel this is the right moment in the cycle to sell the asset and take advantage of the recent significant improvement in the wider UK Regional office investment market. This strategic sale provides us with an opportunity to reinvest capital and to continue to focus our attention on new opportunities.”

Farmer Capital advised the purchaser.

For more information please visit: www.templeback.com

ENDS

For further information:

Benson Elliot

Marc Mogull, Managing Partner
+44 (0) 20 7808 8900

FTI Consulting

Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

Brunswick Group

Nina Coad / Alice Mitchell
+44 (0)20 7404 5959

About UK & European
UK & European is a privately owned property development and investment company, based in London. They have a substantial investment portfolio across all property sectors (commercial and residential), as well as an extensive development programme with current projects in office, industrial, residential and mixed use, in London and throughout the Europe. www.ukandeuropean.com

Benson Elliot, the UK-based private equity real estate fund manager, has sold CBXII in Milton Keynes to Blackrock for £35 million, reflecting a net initial yield of 7.0%.

CBXII, a 150,000 sq ft mixed-use office and retail scheme, is prominently located on Midsummer Boulevard, within the Central Milton Keynes Business District. The property was acquired by Benson Elliot Real Estate Partners II, L.P. (the “Fund”) in 2010, with a view to upgrading the quality of the office accommodation, improving tenant mix and covenant strength and increasing rental levels. CBX II is split over three buildings on Midsummer Boulevard: Midsummer East, Midsummer West and Midsummer Court.

Benson Elliot has accumulated over £1 billion in UK regional office and retail investments since the acquisition of CBX II, as part of its “Reach for the Regions” programme. In commenting last year on the firm’s UK investment activities, Benson Elliot Managing Partner explained that: “The spread between prime London yields and the best of the rest was getting too wide to be justified by fundamentals. People sometimes forget how little new stock has been delivered outside London over the past few years.”

At CBX II, Benson Elliot managed a £4.2 million refurbishment programme, fully modernising all office accommodation in the building, creating new retail space and improving reception and common areas. The property has benefited post-refurbishment from the growing demand for high quality regional office accommodation, and is today 80% let. New tenants welcomed to the building since the Fund’s acquisition include Global Radio, New Era (baseball cap manufacturer), and Ingram Micro (electronics). The ground floor retail offer is anchored by JD Wetherspoon and Pizza Express.

James Jakeman, Benson Elliot Principal, said:

“CBXII was Benson Elliot’s first UK investment, and it’s been a great success for our investors. The asset’s performance has validated our thesis of buying into an expected return of tenant demand in the regions, creating the kind of high quality product that would be attractive to leading UK investors. Having transitioned the asset back to core, the time is right to release the value created.”

Allsop advised Benson Elliot while Blackrock was advised by Tudor Toone.

ENDS

For further information:

Benson Elliot
Trish Barrigan, Senior Partner
Matilda Lane
+44 (0) 20 7808 8900
Matilda.lane@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44(0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

Benson Elliot, the UK-based private equity real estate fund manager, announces the sale to Aviva Investors of Ealing Cross, a grade A office building in Ealing town centre, and the completion of a forward sale of 1-8 The Broadway – also in Ealing – to Pramerica Real Estate Investors. The sale of 1-8 The Broadway, constituting the first phase of Benson Elliot’s re-development of the Arcadia Portfolio, was agreed in January of this year. The combined sale price of the twin disposals is north of £100 million.

Ealing Cross
Benson Elliot acquired Ealing Cross, the highest quality, most modern office building in Ealing, in June 2013. Soon after acquisition, Benson Elliot initiated a refurbishment of the 133,400 square foot building’s common areas, secured planning permission to more than double parking provision and, in November 2013, rolled out a new marketing and letting strategy. During the subsequent months Benson Elliot secured five new tenants, increasing occupancy at Ealing Cross from 68% to 93%, and improving significantly the building’s income profile.

1-8 The Broadway
The forward sale to Pramerica of 1-8 The Broadway was announced in January 2014. Completion of the £37.4 million transaction marks the culmination of a transformational re-development of the former Arcadia Shopping Centre, with the handover of three new store units to major high street retailers Morrisons (47,000 sq ft), TK Maxx (43,000 sq ft) and McDonalds (9,000 sq ft).

Trish Barrigan, Benson Elliot Senior Partner, said:
“We’re real believers in the investment attractions of Ealing, and pleased with the central role we’ve been able to play in the transformation of that community’s town centre. On Ealing Cross, the property’s strong letting performance and an unsolicited approach persuaded us to exit earlier than planned, but we’re confident Aviva will be good stewards of this prime asset going forward. At Benson Elliot we’ll now focus our attention on the re-development of the remainder of the Broadway site, working with local planning officials and community groups to conceive an exciting new retail and residential offering for Ealing’s Crossrail gateway.”

Strutt & Parker and GCW advised Benson Elliot on the sale of 1-8 The Broadway, while JLL advised on the Ealing Cross transaction.

ENDS

For further information:

Benson Elliot
Trish Barrigan, Senior Partner
Matilda Lane
+44 (0) 20 7808 8900
Matilda.lane@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44(0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

With a combined area of approximately 620,000 sq ft, the Mander Centre is the dominant in-town shopping offer in Wolverhampton, comprising a two-level covered scheme of 103 retail units, with c. 55,000 sq ft of ancilliary offices and a 530 space, multi-storey car park. The Centre serves an extensive primary retail catchment (430,000 people) and generates exceptional footfall (17 million p.a.).

In June, planning permission was granted to reconfigure the Mander Centre to deliver a 90,000 sq ft new build anchor store, together with 9 larger format units, all arranged around a new atrium and a re-constructed retail mall. The anchor store has been pre-let to Debenhams, who will join existing brands Boots, BHS, JD Sports, New Look, Starbucks, Clarks, H Samuel, The Entertainer and Costa Coffee, amongst others.

Marc Mogull, Benson Elliot Managing Partner, said:
“Over the past few years, we’ve been pursuing a strong and successful UK regional investment programme, having identified early on the growth story now unfolding in regions like the West Midlands. In-town shopping centres – many suffering from under-investment – have been an important component of that programme.

“The Mander Centre is a well-located, robust business with a solid profile and a loyal customer base. With committed ownership, strong in-house retail expertise and a focussed capital programme, we believe there is a significant opportunity to rejuvenate the Mander Centre, making it once again the centrepiece of a thriving Wolverhampton city centre.”

Councillor Peter Bilson, Wolverhampton City Council’s Cabinet Member for Economic Regeneration and Prosperity said:
“These are momentous times for our city, with a level of activity we haven’t known since the 1960s. It’s a clear sign of the progress Wolverhampton’s making that a major private equity firm like Benson Elliot should want a stake in its future. They have great plans for the Mander Centre – and on behalf of the council and all its partners, I’d like to welcome them to a city that is really making it happen”.

Peter Cornforth, Director of Retail at Benson Elliot, said:
“The City’s embarked on a £1bn plus regeneration programme to deliver significant improvements to both the built environment and the range of facilities on offer to visitors, shoppers, workers and residents. We’re confident that a revitalised Mander can make a key contribution to Wolverhampton’s exciting future.”

Jackson Criss advised Benson Elliot, while Cushman & Wakefield acted for Mander Investments Ltd.

ENDS

For further information:

FTI Consulting

Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

The sale by Berliner Volksbank eG, the sole occupier in both buildings, anticipates a future consolidation by the bank into a single headquarters.

The key details of the assets are as follows:

• Budapester Straβe 35 is a nine storey office building fronting the popular Olof-Palme-Platz in central Berlin. Constructed in 1985 as the headquarters of Berliner Volksbank, the building comprises 9,548 sqm of net lettable area overlooking Berlin’s Tiergarten. Its distinctive circular structure, framed by a glass and red brick façade, contributes to its visual prominence. In addition to the bank’s offices, the building also houses the Berliner Volksbank Art Forum (Kunstforum der Berliner Volksbank).

• Kurfürstenstraße 87 is an eight storey, 6,192 sqm office building situated at the corner of Kurfürstenstraße and Burggrafenstraße. Constructed in 1929 as the headquarters of Lenz & Co (“Lenz-Haus”), the building – which features a listed shell limestone façade – was designed by famed German architect Heinrich Straumer. Straumer, who also designed the iconic Berlin Radio Tower, was a student of Paul Wallot, designer of the Berlin Reichstag. Kurfürstenstraße 87 was extensively refurbished in 2002.

Both properties are situated within 200 metres of Berlin’s premier retail boulevards of Kurfürstendamm and Tauentzienstraße.

Following acquisition, the buildings will be leased back to Berliner Volksbank eG, during which time the Joint Venture will finalise refurbishment plans and tender construction works.

Marc Mogull, Benson Elliot Managing Partner, said:
“Since entering the market in 2010, Benson Elliot has been steadily expanding its presence in Berlin. We have a positive outlook on the market, and are pleased to have secured control of these two well-known Berlin office properties. Having worked closely with Berliner Volksbank to structure an acquisition that meets their financial and occupational needs, we look forward to maintaining that relationship as the bank navigates its eventual relocation. Thereafter, we will work with our partners, Klingsöhr Projektentwicklung and Rockstone Real Estate, to return these buildings to prominence, creating a modern space worthy of this important location.”

ENDS

For further information:

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

150 St. Vincent Street is a modern office building situated in the heart of Glasgow’s CBD. The building sits on a commanding site at the corner of St. Vincent Street and Wellington Street, and provides 71,400 square feet of accommodation over seven floors. Glasgow is the UK’s second largest office hub outside London – a strengthening regional market experiencing increasingly constrained grade A office availability.

150 St. Vincent Street was constructed in the late 1970’s by Scottish Amicable, and served as that financial institution’s headquarters until their acquisition by Prudential plc in 1997. Today the building is home to blue chip tenants such as Allianz, JLL, Monster.com and Irwin Mitchell.

James Jakeman, Principal at Benson Elliot, said:
“We’re ongoing supporters of the UK regional investment story and, as such, 150 St. Vincent Street represents an exciting opportunity for us. We expect a focused capital investment programme, on the back of limited quality supply and significant growth in tenant demand, will enable us to deliver strong income improvement at the property.”

St. Vincent Street is situated within five minutes’ walk of Glasgow Central Station. The area is popular with large corporate occupiers, with AON, RBS, Standard Life, KPMG and Barclays, all located in the immediate vicinity. Buchanan Street, the UK’s busiest retail street outside London, lies just a few blocks east of the building, with the new Apple Store anchoring Buchanan Street’s intersection with St. Vincent Street.

ENDS

For further information:

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

In Manchester, Benson Elliot let 17,000 sq ft across two floors at 55 Princess Street to international law firm Trowers & Hamlins. 55 Princess Street offers 51,700 sq ft of grade A office space in central Manchester, arranged over six floors, along with 4,100 sq ft of ground floor retail space. Trowers & Hamlins has taken a 10 year lease and will join other tenants in the building including fellow law firm, Slater and Gordon and Tesco. The Trowers & Hamlins letting increases occupancy at 55 Princess Street to 77%. Since its acquisition of the building in September 2013, Benson Elliot has overseen the refurbishment of the reception and common areas, and upgraded vacant space, bringing the building into line with expectations of leading tenants in the market.

Other regional lettings include 36,200 sq ft at 10 Templeback in Bristol (13,000 sq ft to Blue Speck Financial and 10,400 sq ft to Mott MacDonald), and 8,600 sq ft of space let to Colliers at 11 Brindleyplace in Birmingham. This flurry of letting activity reflects a recovery in regional office demand, particularly for grade A space in major markets, and Benson Elliot’s hands-on, dynamic approach to managing its office investments.

James Jakeman, Principal at Benson Elliot, commented: “The return of the regional office rental market is obviously good news for Benson Elliot’s investors, and validates the regional investment strategy we’ve been deploying in the UK in recent years. When we bought 55 Princess Street, we had a conviction view that economic growth spreading outwards from London would reward us for taking some carefully calibrated letting risk in markets with limited availability of grade A office stock. We think this recovery has further to run, and expect to see further letting successes as the year progresses.”

ENDS

For further information:

FTI Consulting
Dido Laurimore / Claire Turvey
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com
+44(0) 20 37271000

During Benson Elliot’s co-ownership of the Novotel Edinburgh Park, a series of proactive management strategies and asset management initiatives were deployed to deliver strong performance improvements to the business. These included new revenue and marketing programmes, and a capital expenditure programme centred on improving the bar and restaurant provision. The hotel is set to further benefit from the arrival of a tram line to the locality which opened in May 2014.

Marc-Olivier Assouline, Principal at Benson Elliot and Head of Hotels, said:
“We purchased this asset at what we believed to be the bottom of the operational cycle, following the global recession and market decline. Since then, our asset management initiatives, and external factors such as the arrival of the Edinburgh Trams, high profile events nearby (notably the Ryder Cup and Commonwealth Games), and a general upturn in the Scottish market have combined to deliver an exceptional improvement in the hotel’s performance. This was a timely moment to realise the value created for our investors, and to pass the asset on to a credible buyer with a strong investment track record.”

Trish Barrigan, Senior Partner at Benson Elliot, said:
“This transaction has been a great success for Benson Elliot and we’re pleased to have had the opportunity to work alongside Algonquin and use our combined hotel expertise and asset management capabilities to create a quality product. We look forward to continuing our relationship with Algonquin on similar opportunities across Europe.”

Jean-Philippe Chomette, Founder & CEO at Algonquin, said:
“With the sale of this hotel to a reputable owner, we successfully close a very exciting step in our European ventures – unlocking value in a solid asset which has been a great success for our teams. It also seals five years of excellent cooperation with our partner Benson Elliot, and we look forward to new opportunities to build our relationship further in the near future.”

Novotel Edinburgh Park opened in mid-2008, and was purpose built to meet the standards of the new generation 4-star Novotel brand. The hotel comprises 170 rooms, a restaurant, meeting rooms and a leisure facility (including a swimming pool). The hotel is set within Edinburgh Park, one of the UK’s premier office business parks. Edinburgh Park is located near Edinburgh Airport and the city bypass, and provides office accommodation to over 9,000 employees and many of the UK’s leading companies.

CBRE was the exclusive agent on the transaction.

ENDS

The properties sold to LEG are all located in North-Rhine Westphalia. They constitute part of the TOR Portfolio, which originally encompassed more than 3,000 residential and ancillary commercial units across Germany. The portfolio, which secured a c. €187 million loan to subsidiaries of Speymill Deutsche Immobilien Company PLC, was acquired by Benson Elliot out of an Isle-of-Man receivership in 2012. That process was directed by special servicer Hatfield Philips International Limited and receiver Ernst & Young, in conjunction with the borrower. Benson Elliot’s purchase of the TOR Portfolio represented one of the first defaulted CMBS portfolio loans to be resolved in the aftermath of the Global Financial Crisis.

Since acquisition, Benson Elliot and joint venture partner Wertgrund Immobilien have undertaken a wide range of asset management initiatives: reorganising management, conceiving and implementing a carefully targeted capex programme, and developing and rolling out a dynamic new marketing and leasing strategy. Over 1,000 leases have been signed to date, and occupancy across the portfolio – which is concentrated in prime metropolitan areas such as Berlin, Frankfurt, Munich, Hamburg and Cologne – has been increased from 90% to 97%.

With this latest sale Benson Elliot has realised well over €200 million of disposal proceeds from the TOR Portfolio investment, exiting 69 of the original 80 assets (c. 2,300 units). Benson Elliot investors have received distributions to date above 150% of invested capital, with significant additional value embedded in the remainder of the portfolio.

Georg Strassner, Principal and co-head of Germany at Benson Elliot, commented:
“We have seen strong income and capital growth across the TOR Portfolio since we acquired it some three years ago. We were confident at the time of purchase that quality residential assets like these – once stabilised – would prove attractive to buyers seeking reliable income in a low interest rate environment. The asset management programme has been highly focused, and demonstrably effective: we’ve created desirable investments, and been disciplined about harvesting these as we’ve progressed. We’ll look to wind down the remaining assets in the near term, crystallising the remaining value in what has been a highly successful investment for Benson Elliot.”

ENDS

For further information:

FTI Consulting
Dido Laurimore / Claire Turvey
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com
+44(0) 20 37271000

Vicarage Field is located in the heart of Barking, on a 5.2 acre site held long leasehold from the London Borough of Barking & Dagenham. Constructed in 1991, on the site of the former Vicarage Field football grounds (home of Barking FC from the early 1900s until the 1970s), the Centre provides 156,000 sq ft of net lettable retail space, together with 500 parking spaces. Strategically situated immediately opposite Barking Station – which provides a regular 15 minute train service to Fenchurch Street in the City – it benefits from the growing trend for retail convenience, whilst being the area’s only covered shopping offer and home to brands such as Argos, Subway, Vodafone, Claires, Poundland and new arrivals Holland & Barrett.

Benson Elliot will look to reposition the retail offer at Vicarage Field, building on the firm’s strong in-house retail expertise and leveraging occupier relationships developed through Benson Elliot’s ownership and management of a 1.3 million sq ft UK retail portfolio.

Marc Mogull, Managing Partner of Benson Elliot, said:
“During the past five years Benson Elliot has established itself as a committed and reliable partner for dynamic local councils across the UK, as they seek to encourage private sector-led regeneration efforts for the benefit of the communities they serve. We’re strong believers in the growth and investment potential of East London and LBBD in particular, and recognise the great opportunity this acquisition offers to revitalise a key part of Barking town centre. We look forward to working with the Council and local community to fulfil the long-term potential of this key Thames Gateway location.”

Vicarage Field benefits from a previous planning consent for a 165,000 sq ft residential scheme, and the Town Centre’s recent mayoral Housing Zone designation will accelerate local housing delivery and help drive retail spend in the coming years.

Councillor Darren Rodwell, Leader of Barking and Dagenham Council, welcomed the sale and said:
“It’s a clear sign of the progress we’re making that a major private investor like Benson Elliot should want a stake in Barking’s future. We look forward to working with them on this key town centre asset to build on our growth agenda, with Barking and Dagenham being London’s Growth Opportunity.”

Peter Cornforth, Director of Retail at Benson Elliot, said:
“This is an exciting purchase for Benson Elliot and provides us with a fantastic opportunity to contribute to the regeneration of a key east London metropolitan centre. The goal has to be to ensure that Vicarage Field’s retail offer keeps pace with evolving shopping trends, and that changes in local aspirations are reflected on the ground. With ambitious growth plans for 35,000 new homes and 10,000 new jobs, the Borough is a great place to invest long-term and as London moves east, we aim to ensure the town centre takes a leading role in shaping Barking’s future.”

ENDS

For further information:

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com