Clearbell acquires 177,000 sq ft of industrial space in Nottinghamshire, East Midlands

Clearbell Property Partners III LP (Clearbell), a fund managed by Clearbell Capital LLP, today announces the acquisition of two industrial units for £8.75m.

The assets, comprising 177,000 sq ft, have been added to the Cara portfolio, a UK-wide portfolio focused on small-to-medium sized warehouses and industrial estates. The portfolio primarily targets suburban locations with limited supply.

Lilac Grove, Beeston, comprises a 70,000 sq ft unit, is currently let to BW Flexible Systems UK Ltd. The site is situated within proximity to Nottingham, with easy access to the M1.

Crown Farm Way, Mansfield, is a 107,000 sq ft industrial estate on the outskirts of Mansfield Town Centre. The site is well located in an area that is experiencing sustained demand for good quality industrial assets.

Asset management initiatives will include refurbishing and rationalising the existing office space at Crown Farm Way and working closely with the tenant at Lilac Grove to improve the asset.

Dominic Moore, Head of Asset Management & ESG Director at Clearbell Capital said: “There is growing demand for appropriate industrial space in the East Midlands. Yet land ripe for industrial development in urban and suburban locations is being snapped up by residential developers, squeezing industrial/warehouse supply. This presents an investment opportunity.

These acquisitions diversify the existing Cara portfolio, adding another region to the portfolio.”

The Cara portfolio consists of 22 assets across the UK.

Clearbell was advised by CPP based in Nottingham.

New brands join £30m Riverwalk redevelopment as Odeon contractors progress fit out

Log Fire Pizza Co., the popular Italian street food brand, and Delaney’s Donkey, a new Irish Bar and Restaurant concept, are both set to open at The Riverwalk, the £30 million redevelopment on the banks of the River Wear. This news comes as Odeon’s fit out works progress for the new multi-screen cinema.

Log Fire Pizza Co. and Delaney’s Donkey are due to open this spring, joining Cosy Club and Turtle Bay on The Riverwalk’s striking new promenade. Winner of the ‘Best pizza in the North East’ in the 2018 Slice Wars, Log Fire Pizza Co has a fast growing fan base across the region and will be opening its first permanent restaurant at The Riverwalk, offering a selection of Italian street food in true Neapolitan style.

Craig Shelmerdine, Log Fire Pizza, added: “We are thrilled to be opening our first restaurant in the heart of Durham. The Riverwalk is set to be an exciting new venture for us and we’re proud to be a part of this. Pizza is perhaps the only dish in the world that can stir up such resounding gastronomic emotions, and we aim to be a place where our customers can find feast and friendship, and enjoy true Neapolitan style pizza, pastas, wines and beers.”

Delaney’s Donkey will offer an all-day menu of fresh locally-sourced food in a relaxed family friendly dining atmosphere, with regular live music and Irish Dancing at the weekends. Owner Andy Maher has plans to expand to further cities, such as York and Newcastle.

Andy Maher, Delaney Donkey’s, commented: “We are delighted to be debuting at The Riverwalk, Durham. We believe we are bringing something truly unique to the city, and in a spectacular location right on the riverfront. We are looking forward to welcoming our first guests soon.”

Nick Berry, Partner at Clearbell Capital, commented:“As the construction programme is nearing completion, and Odeon is making progress on the fit out of its six-screen cinema, we are pleased to welcome these exciting new restaurants to The Riverwalk. This development is about bringing a new energy to this part of the city, with a vibrant mix of restaurants, cafes and bars, to complement the cinema and bowling lanes. These two new brands are unique offerings as up and coming local operators, who we are proud to welcome alongside the national brands, giving visitors and residents more choice and more reasons to stay in the city.”

Many bars and cafes are already open at The Riverwalk, including Old Tom’s Gin Bar, It’s All About the Cake and Ice Stone Gelato, which opened last month. This sits alongside the wide range of convenient and family friendly shops that are also open and trading, such as Savers, CEX, Poundland and The Works.

The Riverwalk is owned by Clearbell Property Partners II LP (Clearbell), a fund managed by Clearbell Capital.

New food hall concept to showcase best of North East street food scene at The Riverwalk

Clearbell Property Partners II LP (Clearbell), a fund managed by Clearbell Capital, today announces a new food offering, The Food Pit, set to open at The Riverwalk, the £30 million redevelopment on the banks of the River Wear.

Clearbell has unveiled the food hall concept, which will be prominently located next to the Odeon cinema on The Riverwalk’s new promenade. The Food Pit will host a vibrant mix of street food and drinks brands in kiosks and mobile units, all situated around communal seating and smaller tables.

Increasingly popular in cities across the country, the food hall concept allows visitors to sample a wide range of food and flavours in one sitting, with something for everyone, from a family day out to the cinema, to an evening with friends.

The Food Pit is looking for the hottest up and coming local food and drink brands, and bringing them all under one roof. The list of operators will be carefully curated so that the operations complement each other, and each brand has a real chance to show off its individual appeal.

Nick Berry, Partner at Clearbell Capital, commented:“The street food scene in the North East is really exciting, and we want to capture some of that spirit in The Riverwalk. The Food Pit is creating a platform to bring in new and unique food operators right into the heart of The Riverwalk, and with the cinema, bowling lanes and a great range of new restaurant brands, we’re establishing a real point of difference for Durham.”

An exciting transformation of Durham’s waterfront, The Riverwalk is creating a new promenade of restaurants and bars, all enjoying breath-taking views of Durham Castle and Cathedral. A six-screen Odeon Luxe cinema is taking centre stage, along with Lane7 boutique bowling, a new facility for Durham Distillery and a host of new restaurants including Cosy Club and Turtle Bay. While many of the shops and cafes are already open, the promenade of restaurants will be opening in phases from early spring.

If you have an exciting food or drinks concept and would like to register your interest, please contact Spencer Wilson spencer.wilson@cushwake.com

The Riverwalk is owned by a fund managed by Clearbell Capital.

Clearbell secures 300,000 sq ft regear in Norfolk

Clearbell Property Partners II LP (Clearbell), a fund managed by Clearbell Capital, today announces the completion of a lease re-gear on 300,000 sq ft at Brunel Way, in Thetford, Norfolk.

The re-gear, with existing tenant Easy Cleaning Solutions (formerly Jeyes), includes removing the tenant’s June 2022 break option. The lease will now run until June 2027.

Brunel Way comprises 300,000 sq ft of manufacturing space, which Easy Cleaning Solutions has occupied since the 1970s.

Clearbell acquired the asset in August 2015, as part of the Polaris industrial portfolio comprising 11 assets, with plans to increase operating income through leasing vacant units, deploying capex and restructuring leases.

Duncan Jarvis, Asset Management Director at Clearbell Capital, said: “The 3 largest tenants in the Polaris Portfolio have restructured their leases, including Easy Cleaning Solutions; Silent Night Group on over half a million sq ft at their sites in Aspatria and Barnoldswick; and Jack Wills at Sheffield Parkway (390,000 sq ft). These transactions illustrate the majority of incumbent tenants in this Portfolio are wedded to their accommodation, either through their long-term occupation or their low headline rent.

David Pearce, Easy Cleaning Solutions said: “ECS are delighted to extend our commitment to the Brunel Way, Thetford site, one of the largest purpose-built cleaning production factories in Europe.Clearbell have taken the time to understand our business and have worked with us to secure a transaction in the long-term interests of all”.

The Polaris portfolio includes industrial assets, predominantly in the North of England. The portfolio focuses on redeveloping and repositioning industrial assets, to drive tenant occupation. 

Alternatives join the mainstream

Late-cycle market conditions and uncertainty in the face of Brexit are driving more institutions to reconsider their investment options. For real estate investors, this is compounded by the headwinds faced by specific sectors, such as the well-publicised plight of high street retail.

Against this backdrop, you might expect investment to be muted, as investors wait and see how uncertainty plays out. While some investors are waiting in the wings, one real estate sector appears to be less affected by this sentiment – alternative real estate.

Alternatives – from student accommodation to co-working space and healthcare property – were initially viewed as a subsector in comparison with commercial and residential. Yet they are now very much centre stage.

A raft of social, economic and demographic changes has created new investment opportunities, offering potential shelter from market and economic uncertainty and creating a new economy that will grow throughout the cycle.

So what are the opportunities in alternative real estate?

The opportunity for residential property is huge. The UK population grew by five million in the 10 years to 2017, with a growing percentage of people living in urban areas.

The way we use property is also changing. The Department for Work and Pensions estimates that 20% of UK households are now privately renting. This shift to renting shows no signs of slowing and is compounded by issues of affordability, changing demographics and the behaviour of the younger population.

It can be challenging for institutional investors to access build-to-rent property due to the lack of zoned land, so obtaining scale is difficult. But despite low initial net yields, long-term capital growth provides the right dynamics for this strategy to succeed.

The ageing population is also affecting real estate needs in this country. Senior living is a growing and undersupplied market ripe for investment, with consumers demanding more sophisticated, diverse accommodation options in later life.

Opportunities investors should turn their attention to include care homes and retirement homes or assisted living developments. Care homes are in poor supply and lack quality. Retirement homes are often overlooked as a solution to the ageing population, but there is a real opportunity to cater to this increasingly vibrant group.

Millennial demand

In 2018, we saw a proliferation of serviced workspaces. Occupants now demand more from offices, choosing services and amenities that provide convenience and flexibility. This trend is changing the way investors manage traditional office assets and is also affecting industrial and storage real estate.

Institutional investors can benefit from increased demand for this type of community-based accommodation. The long-term sustainability of some of these popular models remains to be seen, but with the right alignment of interests, the co-working trend could be here to stay.

A certain amount of operating risk must be taken on to manage alternative assets, but in the long term, a steady flow of returns can be reaped. The right alternative assets can be repositioned in the market through intensive asset management that ensures real estate evolves to meet consumers’ ever-changing demands.

This article was originally published in Property Week

Clearbell and Patrizia Announce Letting at The Bower, Stockley Park

A joint venture between Funds managed by Clearbell Capital and PATRIZIA today announce the letting of the ground floor at The Bower, 4 Roundwood Avenue, Stockley Park to Spaces, part of IWG.

The 45,824 sq ft floor will provide the latest co-working and service office facilities, together with a new café and club lounge for use by all occupiers within The Bower.

Spaces has signed a new 15-year lease with break in year 10 and will pay a base rent throughout the term of the lease together with a revenue share. IWG PLC is to act as guarantor for the duration of the lease.

Stockley Park is one of the UK’s premier business parks located 3.5 miles north of Heathrow Airport. The property has been developed to take advantage of low levels of Grade A office availability in the M25 / Thames Valley region. Development included a focus on energy and efficiency, bringing the property to a BREEAM rating of Excellent and EPC A rating.

Duncan Jarvis, Director at Clearbell said, “We are delighted to have let the whole Ground Floor to Spaces. This greatly improves the amenity offering in the building including a café in the atrium and further aids future occupiers of The Bower to flex in and out of the co-working space. This letting also cements our multi-let strategy at this flagship building which is now being offered in suites from 7,000 sq ft to a total of 100,000 sq ft, on the 1st and 2nd floors.”

Michael Pryer, Managing Director, Fund Management at PATRIZIA said, “We are pleased to welcome Spaces to the Bower who we feel confident will thrive given the current constrained supply and noticeable uptick in occupier activity in the Thames Valley”

Stuart Bedford, Director of Exton Estates said, “The letting of the ground floor to Spaces fully endorses The Bower as an exemplar in sustainable redevelopment of a phase one Stockley Park building and provides for a grade A institutional letting, with more to follow.”

Rupert Cooper, Global Development Director at IWG said, “The flexible workspace revolution has well and truly arrived and we are seeing demand for flexible office space increasing dramatically. Our research has shown that 53% of professionals now choose to work flexibly for at least half of their working week, illustrating just how important it is for companies to capitalise on this growing trend.

“In such a strong and dynamic market, we are excited to be partnering with Clearbell, PATRIZIA and Exton Estates.”

The new centre is due to open in Q1 2019. Cushman & Wakefield, CBRE and DTRE advised Clearbell, PATRIZIA and Exton. Doherty Baines advised Spaces.

Clearbell Lets Aspect Warehouse in Doncaster

MH Star Ltd signs 15-year lease at annual rent of £613,000

Clearbell Property Partners III LP (Clearbell), a fund managed by Clearbell Capital, today announces that it has let Aspect Warehouse, Doncaster, to MH Star Ltd, on a 15-year lease, for an annual rent of £613,000.

Aspect Warehouse is a 123,000 sq ft grade A warehouse in West Moor Park, Doncaster, South Yorkshire. The warehouse is in a key location for the logistics market in Yorkshire.

Aspect Warehouse is part of the Cara portfolio, which was first established in March 2017. Cara is a UK-wide portfolio focussed on to the logistics sector, consisting of 20 assets. The portfolio assets facilitate the demand for appropriately sized warehousing to service delivery in the UK.

Dominic Moore, Head of Asset Management & ESG Director at Clearbell Capital said: “We welcome MH Star Ltd as a new tenant at Aspect Warehouse. This is a highly sought-after location that already boasts distribution warehouses that are home to many major retailers. The supply-demand gap for logistics space to service delivery demand presents a compelling investment opportunity. The Cara portfolio aims to take advantage of this gap.”

Toby Vernon, founder-partner at Commercial Property Partners LLP said: “This deal demonstrates the ongoing appetite for good-quality logistics space across the region. Aspect provides an outstanding, high quality warehouse space situated on the West Moor Park, immediately adjacent to Junction 4 of the M18, offering fantastic road networks with fast connections to the M1, M18 and M62.”

Clearbell lets over 14,000 sq ft of office space in the Midlands

• Clearbell lets 9,500 sq ft at Blenheim Court, Solihull, to UK Power Reserve and Reaplt
• Clearbell lets 4,700 sq ft at Edmund House, Birmingham, to Gleeson Recruitment

Two funds managed by Clearbell Capital today announce 14,000 sq ft of lettings. Both lettings further demonstrate the resilience of the regional market.

Blenheim Court, Solihull

CPP II has let over 9,500 sq ft at Blenheim Court to UK Power Reserve and Reaplt, made possible by reorganisation of existing tenancies.

UK Power Reserve, a low-carbon electricity and service provider, has extended its current space by an additional 1,800 sq ft on a 5-year lease. UK Power Reserve now occupies the majority of the 6^th floor of Radcliff House. In addition, ReapIt, a real estate software platform, a new tenant to Radcliffe House, has taken on 7,700 sq ft on the 5^th floor, also on a 5-year lease.

Following these lettings, Blenheim Court, a 148,000 sq ft building is now fully-let to 16 tenants. Blenheim Court is a prominent office location in Solihull town centre, comprising two buildings – Radcliffe House and Chadwick House. Blenheim Court was acquired with plans to improve the two office buildings and to provide a Grade A office location in the heart of Solihull. New chillers have been installed to improve the energy efficiency of the building as part of this upgrade.

Clearbell was advised by Savills.

Edmund House, Birmingham

CPP III has let 4,700 sq ft to Gleeson Recruitment at Edmund House, the 4th letting since acquisition.

Clearbell has secured a new 7-year lease from the specialist recruitment firm, Gleeson Recruitment, for the 9^th Floor at Edmund House.

Edmund House comprises 78,000 sq ft of office accommodation including 10,000 sq ft of retail and restaurant space. It is located in the heart of Birmingham’s CBD and traditional office core.

In a similar strategy to Blenheim Court, this asset was acquired to capitalise on the lack of Grade A accommodation in Birmingham, amid rising demand from businesses for quality office space.

Clearbell was advised by Savills, GVA and CBRE.

Dominic Moore, Head of Asset Management at Clearbell Capital, said: “The Midlands has become an increasingly attractive location for businesses, with ongoing developments in the three major cities, Coventry, Solihull and Birmingham. All three cities are set to benefit from the HS2 development and are benefiting from much needed inward investment. The Midlands boasts a number of top tier universities including Warwick, Birmingham and Coventry. Not only does this attract talent to businesses in the region, but infrastructure improvements and competitive rents are driving a number of businesses out of London to the Midlands. “We invested in this region across both our second and third funds with the aim to improve the supply of high-quality office space in these cities. Blenheim Court is fully-let and Edmund House continues to see demand from tenants. This reaffirms our strategy to provide Grade A office space in underserviced locations.”

Clearbell Renews Lease at Bury Point, Manchester, to Morrisons on 9-year Term

Clearbell Property Partners II LP (Clearbell), a fund managed by Clearbell Capital, today announces that it signed a new lease at Bury Point, Manchester, to Morrisons for a 9-year term to November 2027.

Bury Point comprises 151,000 sq. ft of logistics space 10 miles north of Manchester city centre. The tenant will use the space for its new wholesale business distribution.

Clearbell acquired Bury Point in May 2014 with the benefit of a lease to Morrisons until November 2018, as part of its Nevado portfolio, an aggregated portfolio of high-yielding logistic/distribution warehouses, with plans to pursue tenancy agreements for well-located logistics assets.

The asset is based in an established industrial location north of Manchester centre. It provides good transport links to both the M66 and M60, with Manchester airport 16 miles away.

Dominic Moore, Head of Asset Management at Clearbell, said: “Our plan for the Nevado portfolio was to take advantage of retailers’ need for additional flexibility from their logistics space, have borne fruit in key locations such as Manchester. Prime space like Bury Point will continue to be popular with retailers seeking greater logistics capacity to service customer demand.” Bury Point is the only remaining asset from the Nevado portfolio, where seven out of eight assets were sold to a private equity fund in October 2016.The property is now being marketed for sale with the benefit of the new lease in place. BC Real Estate and DTRE are acting as selling agents.

Clearbell sells Voyager Place, Maidenhead, for £31 million

Clearbell Capital today announces that it has sold Voyager Place, Maidenhead, for £31 million a 5.25% NIY, to a Local Authority, on behalf of a fund it manages, Clearbell Property Partners II LP (Clearbell).

Voyager Place is an office building, comprising 56,750 sq. ft of prime office space. Clearbell acquired Voyager Place in December 2015. The asset forms part of the Chalk portfolio, which aims to drive investor returns through asset management initiatives and reletting. The Chalk portfolio is comprised of 7 office assets across the south-east.

The sale follows the £7 million speculative refurbishment of Voyager Place, undertaken to reposition the asset as a Grade A office asset. The refurbishment programme, which concluded in July 2017, included the installation of LED lighting, new air conditioning system and six electric car charging points. The reception area, building entrance, and external terraces on the third floor were also updated as part of the refurbishment, following which the building was let in its entirety to FM Insurance Company Ltd on a 10 year lease expiring March 2028 paying an annual rent of £1.74 million, equating to £32 per sq ft.

Duncan Jarvis, Director at Clearbell, said: “Our Grade A refurbishment of Voyager Place was intended to address the lack of Grade A office space in the south east, which continues to experience surging demand. Towns including Maidenhead continue to grow their business communities, without the necessary upswing in supply. Infrastructure improvements like Crossrail have been a draw for tenants and investors in the region, too, as locations such as Maidenhead will benefit from easier access to central London.”

The site is located outside Maidenhead town centre in a key Thames Valley business location, with good rail connections to both London and Reading and access to the M4.

Voyager Place is fully let to FM Insurance on a 10-year lease, expiring in 2028.