Realised Return 2010-2015
Our transactional activities focus on market and asset dislocations allowing us to deliver outperformance through a combination of best in class deal sourcing, asset management and well timed exits. All potential investments are appraised against tailored criteria; allowing us to deliver outperformance
Virtual freehold office building single let to Deutsche Bank, situated on Brindleyplace, an urban business park development scheme in the CBD of Birmingham. The property provides c.69,000 sq ft of Grade A office space.
The property was acquired in Q3 2013 at a net initial yield of 6.13%. The acquisition formed part of a wider regional UK strategy focusing on the mis-pricing of high quality assets compared to long term fair value. The business plan focused on regearing the lease with the main tenant as part of Deutsche Bank’s expansion outside of Central London, and in particular the consolidation into Birmingham and Brindleyplace.
A number of unsolicited offers were received in 2015, with the property subsequently sold in Q4 2015.
A freehold multi-let office and retail property situated in the City of London’s financial district, comprising 32,691 sq ft of office accommodation across 7 upper floors, along with 8,963 sq ft of retail and restaurant accommodation at ground floor fronting directly onto Fenchurch Street. The property is situated directly opposite 20 Fenchurch Street, a tower development also known as the ‘Walkie Talkie’, which was completed in 2014.
The property was acquired in Q4 2011 for £27m post completion of development works by the previous owner. The property was c.50% vacant by floor area. Post-acquisition, 95% of the vacant space was leased within 4 months at rents in excess of underwriting.
In addition to the open market leasing activity, a surrender of an existing lease was completed together with a simultaneous re-letting to an existing occupier and lease re-gear. This increased the WAULT from 4.3 yrs to 6.4 yrs and increased the passing rental income.
A freehold single let office building situated in the heart of the London West End market providing c.9,000 sq ft of office space across lower ground, ground and six upper floors.
At acquisition, the property was in a state of disrepair as a result of a poor maintenance regime employed by the subtenant. Projected business plan of repositioning the asset was commenced through instigation of mid-lease repairs and issuing of an interim schedule of dilapidations to the tenant and subtenant. As per the initial business plan, this allowed negotiations to commence regarding lease regear.
During lease negotiations, unsolicited offers were received for the property. The asset was subsequently sold in Q1 2013.
184–190 Oxford Street comprised two adjoining mixed use retail and office properties occupying a prominent position on the north side of Oxford Street, with frontages directly onto Oxford Street, Great Titchfield Street and Market Place.
Originally built in the 1950s, the property consisted of 11,399 sq ft of retail accommodation over basement, ground and first floor and 14,622 sq ft of office accommodation over 2nd to 5th floors at acquisition. It was leased to 4 tenants, 2 retail tenants on long lease contracts and 2 office tenants on short lease contracts with retail income responsible for 80% of the total at acquisition.
Trinova were retained to undertake the development management of the property on behalf of CBRE Global Investors. During the development process, Trinova undertook a number of workstreams to maximise the potential for the proposed scheme, including the maximisation of floor areas through infilling of redundant light wells, improving efficiency of existing circulation spaces to the retail units and increasing floor area through a 2 storey upward extension. This generated an increase in lettable floor area on the office accommodation of 46%. To facilitate the physical variations detailed above, a lease re-structure was completed with one of the retail occupiers, which extended the lease term and increased the passing rent.
During the construction process, an early active marketing campaign capitalised on the lack of good quality space in the microlocation, leading to outperformance on achieved rental values on the office accommodation in excess of 70% against underwriting forecasts.
This freehold multi-let office and retail property situated in the City of London’s financial district on a 100% prime insurance address comprised of 6,667 sq ft of office accommodation across ground and 4 upper floors, along with 2,097 sq ft of restaurant space at lower ground and 530 sq ft of retail at ground floor. A total of 9,294 sq ft.
At acquisition for £4m in Q4 2012, the property was severely undermanaged, with 36.4% of the office space vacant and a number of tenants engaged in disputes with the property manager over a poorly run service charge regime. The property was unrefurbished and required full replacement of central plant, lift machinery and extensive redecoration.
Over an investment cycle of 17 months, Trinova’s business plan identified opportunities to significantly improve the office accommodation and common parts to increase attractiveness to occupiers who are required to be situated within walking distance of Lloyds of London. A sale price of £5.75m was achieved, reflecting £430 per sq ft and a net initial yield of 5.75%.
Acquisition, income management and refurbishment of a mixed use, freehold multi-let office and retail property in the City of London’s financial district.
At acquisition, the property provided 32,105 sq ft (2,983 sq m) of well specified office accommodation over five floors and 760 sq ft (71 sq m) of retail space. It was fully let to seven office tenants on leases expiring from 2015 – 2018, and the retail accommodation was fully let to a single tenant on a lease expiring 2018.
Problems with the central plant complicated the formal sale process in 2013 and lead to the property being withdrawn from the market. Trinova carried out a full performance analysis of the central plant and air conditioning system which allowed us to negotiate an attractive entry price of £15.05m reflecting a net initial yield of 7.5%.
Over an investment cycle of 24 months, the central plant was completely replaced and a number of lease re-structured to increase the passing rental level and extend the income term. A sale price of £23.75m was achieved and a realised investment return of 45.5% IRR / 1.98x equity Multiple (Leveraged asset level).
Trinova has transacted a total of £525m across acquisitions and disposals
Trinova has a realised IRR of 34% across 8 full cycle deals over the period 2010-2015.