Sterling Property Ventures (Sterling) has acquired a mixed portfolio of seven commercial property assets from BlackRock – through its Real Estate business – acting on behalf of British Airways Pensions Trustees Limited, in a £236 million deal.
All properties in the portfolio*, which includes a shopping centre, retail and logistics warehousing, offices, a hotel and food and beverage space, are in the English regions. They are freehold or held on long leases and boast a combined income in excess of £18.5 million.
The acquisition is Sterling’s second since it set up its asset management and investment arm last Autumn. The business acquired Mitchells & Butlers’ Birmingham headquarters from Legal & General earlier this year, in a £46m deal.
Sterling’s team has delivered more than 10 million sq ft of commercial real estate, including Birmingham’s award-winning office development 103 Colmore Row. The firm appointed new shareholders Adam Crickmore and Neil Ridley to its board last year to expand its asset management and investment business.
James Howarth, Sterling’s managing director, said: “Our plan is to have a minimum of £1billion of assets under management. Acquiring a property portfolio from British Airways Pensions is a significant stepping stone towards that target. We are seeking high quality assets, ideally with the opportunity to add value, allowing us to bring our skills to bear. As this latest purchase demonstrates, we are sector agnostic.”
The seven new assets will be held in Sterling’s SPV Endeavour Ltd vehicle, which is backed by equity investor LetterOne.
Fund manager BlackRock, through its Real Estate business, led the deal on behalf of British Airways Pension Trustees Limited, with joint agents ACRE Capital, Morgan Williams and Capital Real Estate Partners handling the sale.
Sterling was represented by Knight Frank and HP Four LLP. Colliers undertook building surveys, with MAPP providing property management advice.
*SCHEDULE OF ASSETS
1. Distribution:
Cubico, Calder Park, Wakefield
330,894 sq ft unit built in 2022 and let to sole occupant Cubico (UK) Ltd.
Super B, Interchange 26, Bradford
231,252 sq ft unit fully let to Advanced Supply Chain Group Ltd.
2. Prime town centre office and mixed-use assets:
Windsor 1 and 2, Windsor Dials, Windsor
Two Grade A office buildings of 89,639 sq ft in the centre of Windsor. Back to frame refurbishment completed in November 2021. 100% let.
Chapel Quarter, Nottingham central business district
Comprising 144,906 sq ft and including a 120-bed Premier Inn; 66,054 sq ft of fully let offices and five retail/leisure units (one vacant).
3. Retail and leisure:
Water’s Edge, Brindleyplace, Birmingham
12 canal-side restaurant and bar units over 62.551 sq ft. Owned by BA since developed in 1994 and remains one of the best performing regional restaurant/bar schemes in the UK. Fully let with occupiers including All Bar One, Wagamama, Cosy Club and Slug and Lettuce.
Longwell Green, Bristol
Three prime retail warehouses comprising 74,060 sq ft across two sites of six acres. Fully let to Lidl, Smyths Toys and Wickes
Hempstead Valley, Gillingham
Leading retail and leisure destination comprising 449,079 sq ft on a 26.6acre site.
98% let and anchored by M&S and Sainsbury’s.
