Mid-Summer is here at the time of this writing, and in the lead-up to it we found some big news abounded for the UK commercial real estate industry…
The highly geared real estate investment trust (REIT) run by London & Scottish known as Regional (RGL) launched a six-year sterling retail bond product in July which offers investors 4.5% interest. Investors will receive a fixed rate of interest of 4.5% a year, with semi-annual coupons paid until the bond matures in 2024. Regional was launched at the end of 2015 and is now at £351 million company. It states that its investment objective investment objective is “to deliver an attractive total return to shareholders, with a strong focus on income, from investing in UK commercial property, predominantly in the office and industrial sectors”.
An office building in Bristol was sold by UK Commercial Property Real Estate Investment Trust in July for £27.5 million to CBRE Global Investors, one of the world’s largest real asset investment management firms. “1 Rivergate represents a prime city office investment in the heart of Bristol’s business district, and we were pleased to act for UKCP REIT at Aberdeen Standard Investments in this deal. The price achieved reflects the continuing demand from investors for strong regional office investments,” stated Richard Coombs of the Bristol office of Colliers International.
Cluttons Middle East sold off its Middle Eastern “crown jewel” offices in the UAE, Sharjah, Bahrain, Oman, and Saudi Arabia in June to Savills. Cluttons sold off the prized Middle Eastern commercial properties for the sake of concentrating on reviving its UK businesses, which have run into financial difficulties in the last couple of years. Savills stated, “This new business in the Middle East provides a vital bridge between Savills’ expanding European business and its established Asian operation, further strengthening Savills’ global coverage.” Cluttons has also determined that London commercial (and residential) properties are being financially harmed by a lack of sufficient modern Internet connectivity.
Large Charleston, South Carolina real estate brokerage Carolina One Real Estate Services is moving to market Lowcountry properties to European real estate investors by working together with United Kingdom-based Mayfair International Realty, which has been in business since the mid-19th century and can trace some of its business roots as far back as 1750. Carolina One president Michael Scarafile says, “We are now working in a global real estate market where the international real estate investor is a reality…Carolina One is aware that real estate is no longer a local-only business; it’s local, national and international, and we’re constantly looking for networks and affiliations that create an unmatched web of connections through which we market our listings.” Lowcountry properties are renowned for “storied history, great climate, stunning vacation opportunities, and [being]comparatively well-priced”.
Top photo © Daniel Lange/GettyImages