Investment/finance | Costar
Leicestershire based Marlborough Property Co has completed the purchase of a £122.5m core London M&S portfolio, bought as a sub-sale from Fortress Investment Group’s recent acquisition of Topland’s £410m Marks & Spencer portfolio.
Marlborough Property Co. Ltd. completes on £122.5m Core London M&S portfolio Marlborough is a wholly owned subsidiary of WA Capital Ltd., the private investment office for Will Adderley, deputy chairman of Dunelm Group plc.
The portfolio comprises 11 London/Greater London M&S stores including Camden, Chiswick, Clapham, Kilburn and Putney.
The purchase was undertaken off market. M&S has more than 10 years remaining on the leases and has an option to extend for another 40 years on expiry. A number of the stores have larger development potential.
Kieran D Cotter & Company acted for the purchaser Marlborough. HP Four acted for the vendor Fortress Group.
Topland confirmed its sale of a portfolio of 76 Marks & Spencer stores to US private equity firm Fortress, as first revealed by Costar News, last month. The property firm did not disclose the price but it is understood to be £410m. The initial asking price of £500m reflected a net initial yield of 5.87%.
Costar News also revealed that Wells Fargo has secured pole position to provide the acquisition financing for the portfolio, understood to be a senior loan at a mid-60s loan to value implying a figure of in excess of £260m.
Aviva provided the outstanding senior debt on the portfolio.
M&S sold the portfolio of long leasehold and freehold stores to Topland in 2001 for £348m as part of plans to return £2bn to shareholders. The retailer then leased the stores back for an initial annual sum of around £24.6m, continuing to trade in all of the sites.
It contains 13 prime London assets including M&S stores in Camden, Chiswick, Clapham and Putney. It stretches across 3.45m sq. ft. and has a combined annual rent of £31.35m.
Topland said the portfolio also includes some non M&S income where Topland has asset managed the portfolio to create value.