Palm Capital seals £40m double deal

Palm Capital has completed the acquisition of two major office blocks from Harbert for just in excess of £40m, as Harbert continues to sell off the assets it bought from Hildane last year, CoStar News can reveal.

The investment manager has bought Point 3 at Opus 40, Warwick, and The Zurich Centre on Solent Business Park, Fareham, as a portfolio in an off-market deal.

Opus 40 is the 87,916 sq ft headquarters of Telent Ltd and has more than seven years remaining on its lease, with a fixed rental uplift in 2018. 

The Zurich Centre in Fareham comprises two buildings of 100,500 sq. ft. and also has circa seven years remaining.

Harbert Managements Corporation’s HEREFF III fund acquired the office buildings when purchasing the share capital in Hildane Properties for £154m at the beginning of last year, reflecting a net initial yield of circa 7%.

That deal included a 15-strong property portfolio totalling 984,943 sq ft (91,503 sq m) - predominantly located in the South East and comprising nine office buildings, four sheds, a leisure complex and a supermarket.

Harbert has already sold the four UK logistics properties to SEGRO for £49.5m.

According to Reda Khatim, managing partner, the transaction continued Palm Capital’s UK regional acquisition strategy initiated a few years ago.

Jonathan Devaney, a partner in Knight Frank’s Birmingham-based investment team, said:  “The two lots provide secure income from committed tenants and future asset management potential.”

Knight Frank acted on behalf of Palm Capital. BNP Paribas Real Estate UK represented Harbert.

Source:   CoStar UK