American REIT lands in the North

The property market in the north of England continues to grow as American REIT; American Realty Capital Global Trust has made an initial £57million investment into the property market in Sheffield and Bradford. The US firm has bought the Pomona Centre in Sheffield and the 117,000 sq. ft. Provident Financial office at 1 Goodwin Street, Bradford. American Realty has bought the two financial offices through its ties with finance house Moor Park Capital Partners. The two firms came together at the beginning of last year with the initial plan to buy, sell and leaseback properties that hold a value between £6m and £80m, but the purchase of these two buildings shows the plan has been somewhat diversified.

The 131,000 sq. ft. building Pomona Centre was bought for £31.4 million reflecting a yield of 8.73% and is currently let to Aviva life & Pensions who have 15 years left on their lease. The building was previously owned by the former Irish developer Patrick Rocca, who sadly took his own life after the Irish property crash.

The second building is the previously stated Provident Financial office at 1 Goodwin Street, Bradford which was bought for £25.5 million with a yield of 8.46% on an off market deal with McAleer & Rushe. Provident Financial currently has 12 years left on their lease.

This property vehicle is the first significant vehicle in recent years to be focusing on the countries regional assets. They first came to the market in 2012 when they purchased a McDonalds outlet in Carlisle for figure close to £1.6 million. According to property week they intend to invest a further 40% of their £1.5 billion in Europe, focusing on the out of London regions in the UK and in Germany and France. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.