Home » Personal loans » Kildare Partners pays c.£260m for Karlin Real Estate’s Project Carolus plus Fox Court

Kildare Partners pays c.£260m for Karlin Real Estate’s Project Carolus plus Fox Court

Karlin Real Estate is selling both its near 30-strong Project Carolus granular UK secondary portfolio and Fox Court in London’s Midtown to Ellis Short’s Kildare Partners paying a combined circa £260m, CoStar News has learned.

Rockspring Hanover Property Unit Trust, managed by Rockspring Property Investment Managers, only sold the 99,644 sq ft office building at 14 – 22 Grays Inn Road in early April to Magnus Real Estate, a Manchester-based asset manager now owned by Karlin.

Fox Court has now traded twice in less than two months after the Rockspring property unit trust owned the office building for nearly five years.

Karlin Real Estate, the real estate investment arm of Los Angeles-based Karlin Asset Management, only entered the UK commercial property investment market in August 2013, acquiring around 30 granular secondary commercial properties throughout the UK in just over 18 months.

In February, Karlin appointed Eastdil Secured to sell the Project Carolus secondary portfolio, with an initial asking price of £200m, which would have reflected a 9% net initial yield, based on a circa £18m annual rent roll.

However, a small number of assets from the original 2.5m sq ft Project Carolus portfolio were sold separately, which reduced the asking price to £190m, excluding Fox Court.

Under Rockspring’s ownership, planning permission to provide a further 25,263 sq ft of new office and retail space over the ground, first, second and third floors, was approved. When built, this will incorporate a major refurbishment of the Gray’s Inn Road entrance and the existing office space.

Planning permission has also been obtained for a new entrance on Brooke Street. It is anticipated that the new scheme could be delivered by mid-2016. Terms have also been agreed for a new ground floor retail unit to be pre-let to Tesco for 20 years, with indexed uplifts.

Project Carolus includes regional offices, retail, business parks, logistics facilities, and a maintenance and R

  • Sony Building, a three-storey office building comprising 50,655 sq ft of office accommodation on 3.07 acres of land in Wavertree Business Park in Liverpool. Karlin paid Telereal Trillium £4.396m in August 2014, reflecting a net initial yield of 10.75%.
  • International House, in Stratford Park, Telford, comprised of a 101, 573 sq ft industrial unit and 28,888 sq ft of additional office space. Karlin acquired the asset from B8 Real Estate, acting on behalf of Barlows Ltd, in September 2014 for £6.1m.
  • All parties declined to comment.

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