13th January 2022
Martin’s Properties, a leading London property company operating across the South of England, today announces 5 acquisitions with a combined value of circa £28.5m and rental income of around £1.8m pa. The acquisitions, all completed from existing cash resources, reflect their strategy to grow and diversify the portfolio in locations which are beneftting from high levels of inward property and infrastructure investment.
Travelodge Seafront Hotel in Bournemouth was purchased from Aviva Investors (Staff Pension Trustees) for £9.31m (6.16% NIY and a reversion to circa 7.25% in 2024). Bournemouth has witnessed exceptional occupancy levels over the past 12 months, fuelled by the rise in staycations as an impact of the pandemic. The hotel occupies a prime seafront location, adjacent to the Bournemouth International Conference Centre and inbetween the Savoy and Marriot hotels, with substantial further investment planned in the area. The hotel is let for a further 30 years with uncapped RPI reviews. Lewis Ellis and Colliers acted for Martin’s Properties and Kimmre acted for Aviva Investors.
Goldvale House in Woking was purchased from AEW (Nuclear Liabilities Fund Ltd) for £5.825m (8.5% NIY). Goldvale House is a highly prominent multi-let town centre office located opposite the newly constructed £500m mixed use town centre scheme including the Hilton hotel, Loft sky bar, Wocca Grill, M&S and Premier Inn. The property benefits from strong ESG credentials as a fossil fuel-free building. Martin’s Properties will seek to further improve its market appeal through a programme of targeted refurbishment works and ESG improvements. Kimmre acted for Martin’s Properties and TT&G Partners LLP acted for AEW.
Waitrose, Wallingford Road, Wantage was acquired from LaSalle (Total Energies Pension Trustee UK Ltd) for £11.62m (5.06% NIY). This purpose-built supermarket benefits from a large site area with excellent parking provisions, located in the heart of Wantage town centre. The highly affluent south Oxfordshire town which is experiencing high population growth, is undersupplied by food stores and the Waitrose offer suits the target demographic, having been there for over 16 years. The successful Waitrose store provides a very sustainable rent and accounts for over 90% of the property’s income. Lewis Ellis acted for Martin’s Properties and Colliers acted for LaSalle.
Two further lease acquisitions were completed on two apartments in Whitelands House, Chelsea, where both have the potential to release marriage value from existing ownership and drive capital growth through high quality refurbishment. JLL acted for Martin’s Properties.
Brook Stotesbury, Head of Commercial Asset Management Martin’s Properties comments: “I am delighted that we have been able to deliver these deals for the start of the year. Each property represents excellent potential for capital and rental growth. We are focusing our acquisition strategy on strong growth locations across London and the South East and all of these acquisitions meet the criteria.
Richard Bourne, Managing Director, Martin’s Properties comments: “This is a fantastic effort from our recently expanded team and a great start to the year. All five acquisitions demonstrate our continued intent to grow and diversify our portfolio.
With a rolling programme of capital recycling and additional refinancing planned, we have circa £50m of cash to deploy. The recent acquisitions provide a mixture of core income with growth potential through RPI linked reviews and value-add potential through focused direct asset management. Our focus this year is to acquire opportunities that will allow us to utilise our full in-house development and asset management expertise to further drive capital value growth.
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