– Elite U.K. Commercial Fund closes acquisition for the alternative global asset manager
SINGAPORE / LONDON – (ACN Newswire) – Singapore-based P.E. firm Elite Partners Capital Pte Ltd announced today it has acquired a portfolio of quality commercial properties in the United Kingdom from Telereal Trillium, one of the U.K.’s biggest private developers, for GB£282.15 million (S$508 million). The portfolio has potential for capital gains upon asset enhancement.
The Hayhill Portfolio comprises 97 freehold offices, 85% of which are located in town centres across the U.K., measuring a combined 2.6 million square feet. Approximately 99.4% of the rental income is secured against the covenant of the U.K. Secretary of State for Communities and Local Government.
The portfolio is currently let to the Department for Work and Pensions – the U.K.’s largest government department – on 10-year Full Repair and Insurance leases with built-in rent uplifts, which commenced on 1 April 2018 and expire on 31 March 2028.
The acquisition is the first significant transaction undertaken by Elite’s Singapore-domiciled Elite U.K. Commercial Fund, which focuses on U.K. real estate. To date, the Fund has raised GB£120 million (S$216 million) in equity and mezzanine funding from more than a dozen prominent institutional investors, family offices and ultra-high net worth individuals.
Elite is an alternative asset manager specialising in yield-accretive global assets. It was incorporated in 2017 by three founding partners, Mr Victor Song, Mr Charles Hoon and Mr Chiew Chuanjin. Mr Song, Chief Executive Officer and Managing Director, was a founding partner of SGX-listed Viva Industrial Trust, which has since merged with ESR REIT.
Mr Song said: “We are very pleased that our Elite U.K. Commercial Fund has been able to seize this rare opportunity to acquire a substantial core portfolio of quality offices. With attractive geographical spread, let on brand new leases to the undoubted covenant of the U.K. Government, the portfolio offers low-risk sustainable long-term yield.”
“The investors of the fund can expect strong and stable income, coupled with potential upside from rental reviews and capital gains through asset enhancements and conversion for alternate uses. We will continue to look into acquiring new assets for this fund,” he said.
Mr Graham Edwards, Executive Chairman at Telereal Trillium, said: “We are delighted to complete the sale of the Hayhill Portfolio to Elite U.K. Commercial. The high level of interest in this well diversified portfolio from both U.K. and global buyers is a positive sign for the U.K. property market, and testament to the quality of the covenant strength on offer.”
Media Contact:
Elite Partners Capital
Emily Goh, tel: +65 6779 9288
emilygoh@elitepartnerscapital.com
WeR1 Consultants Pte Ltd
Grace Yew, elite@wer1.net, +65 6737 4844
About Elite Partners Capital
Incorporated in 2017, Singapore-based Elite Partners Capital is an alternative asset management company focused on the management of yield-accretive global assets with high growth potential and well-defined exit strategies. Backed by a team with proven expertise in private equity and real estate investment trusts (REITs), its threefold investment philosophy aims to protect initial capital, preserve investment value and create new growth opportunities.
Elite Partners Capital has obtained an in-principle Capital Market Services (CMS) licence from the Monetary Authority of Singapore (MAS) under the Securities and Futures (Licensing and Conduct of Business) Regulations. For more information, please visit: http://elitepartnerscapital.com.