SERVICES

  • Investment
  • Industrial Agency

CHALLENGE

  • The property was acquired by our clients Hines Pan Core Euro Fund (HECF) in 2006 as a sale and leaseback with Cadburys. The property had a break clause in December 2011 and as part of an asset management strategy, dialogue was opened with the Tenants in 2010 for its removal to increase value.

RESULT

  • The investment department worked in conjunction with industrial agency team to re-gear the existing lease with Cadbury’s by removing the break clause, taking the unexpired income from 12 months to six years.
  • On completion of the re-gear a marketing brochure was prepared and an number of key select investors were approached on a low key basis.
  • A sale price was agreed with Cabot Properties Inc, a US REIT at £24,74M reflecting an initial yield of 8.1%, an excellent price given the short unexpired term. The acquisition marked Cabot’s first acquisition in the UK.