Rosette Merchant Bank completes first acquisition of 2018
Rosette Merchant Bank has marked its first deal of 2018 with the acquisition of the 149,000-sq ft Tesco Extra supermarket and an accompanying retail parade in Oldham, Greater Manchester from Bowmer & Kirkland. The purchase price was in excess of £50m with over 90 per cent of the income secured against Tesco with in excess of 16 years unexpired.
The property comprises a modern two storey supermarket and convenience District Centre constructed in 2008 for Tesco together with 900 car parking spaces. The lease to Tesco runs until February 2034 with no breaks and benefits from 5 yearly rent reviews to the higher of 2.5 per cent pa compounded or uncapped RPI. The property is the dominant town centre foodstore and the investment also includes a mix of national and local retailers and multiple opportunities for asset management to further enhance the properties.
Adam Cavanagh, head of real estate, said: “This deal, our fifth now, demonstrates our ability to source, secure and complete complex transactions while creating value for our investment partners. We have built a strong track record and a name in the market as leader in the field of Sharia compliant real estate investment. We have ambitious plans for the year ahead and beyond in which we intend to continue to build our portfolio in the UK and enter the European markets. By 2020 our goal is to have £1bn of assets under management.”
Rosette Merchant Bank was advised by Montagu Evans. Bowmer & Kirkland was advised by de Morgan & Co and Knight Frank.