Sterling Property Ventures has bought a seven-strong mixed portfolio of commercial property assets from BlackRock, acting on behalf of British Airways Pensions Trustees, for £236 million.
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 have a combined income in excess of £18.5 million.
The assets include: Cubico, Calder Park, Wakefield, a 330,894-square-foot distribution unit built in 2022 and let to sole occupant Cubico; Super B, Interchange 26, Bradford, a 231,252-square-foot unit fully let to Advanced Supply Chain Group; Windsor 1 and 2, Windsor Dials, two Grade A office buildings of 89,639 square feet in the centre of the town, completed in November 2021 and 100% let.
The portfolio also includes Chapel Quarter in Nottingham central business district, which comprises 144,906 square feet and including a 120-bed Premier Inn; 66,054 square feet of fully let offices and five retail/leisure units (one vacant).
The remaining three assets are:
- Water’s Edge, Brindleyplace, Birmingham, 12 canalside restaurant and bar units over 62,551 square feet, fully let with occupiers including All Bar One, Wagamama, Cosy Club and Slug and Lettuce.
- Longwell Green, Bristol, three retail warehouses comprising 74,060 square feet across two sites of six acres and fully let to Lidl, Smyths Toys and Wickes.
- Hempstead Valley, Gillingham, a retail and leisure destination comprising 449,079 square feet on a 26.6-acre site, 98% let and anchored by M&S and Sainsbury’s.
The acquisition is Sterling’s second since it set up its asset management and investment arm last autumn. The business bought Mitchells & Butlers’ Birmingham headquarters from Legal & General earlier this year, for £46 million.
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 in a statement: “Our plan is to have a minimum of £1 billion 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 assets will be held in Sterling’s SPV Endeavour 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, with joint agents ACRE Capital, Morgan Williams and Capital Real Estate Partners handling the sale.
Sterling was represented by Knight Frank and HP Four. Colliers undertook building surveys, with MAPP providing property management advice.