Ventures & News

BCM were involved in establishing Wichford in 2003 in conjunction with JO Hambro Capital Management (JOHCM). The aim was to acquire and build a portfolio of offices in the regions leased to central Government departments. This was in response to the Lyons report, and the aim was to capitalise on increased demand and rental growth caused by the pressure on central Government departments to decentralise. The company rapidly built up a portfolio in the UK and Western Europe, and was listed on the LSE in 2006. The portfolio reached a value of c.£700 million at its peak, and now stands at around £500 million and consists of some 70 properties, most of which are in the UK. The company together with BCM acts as asset manager and concentrates on enhancing income through regearing leases and optimising the occupation of the tenants.

Recent News - Wichford and Redefine agree £208.7m merger

"Two listed property companies that share the same investment and asset manager are to merge in a £208.7m deal. Wichford and AIM-listed Redefine International reached agreement on Wednesday for a recommended all-share offer to be made by Wichford for Redefine.

Wichford, which owns of £574m of central and state government-occupied buildings in the UK and Europe, is offering 7.2 new Wichford shares for each Redefine share, which values Redefine’s shares at 46.2p each. Both companies are managed by Redefine International Fund Managers, which is majority owned by Johannesburg Stock Exchange-listed Redefine Properties, South Africa’s second-largest listed property company. Redefine International also holds a 21.7% stake in Wichford.

Redefine Properties International will own 66% of the enlarged company, which will be known as Redefine International and be listed on the main London Stock Exchange. Redefine has agreed to subscribe for at least its pro rata share of any capital raising, which would be 66% of the total, which would involve a deeply-discounted rights issue of £100m. Pinsent Masons advised Redefine International." (PropertyWeek)
 

In 2006 an opportunity arose to structure a joint venture with Travis Perkins plc (TP), who were keen to release some equity from their freehold portfolio without carrying out a straight sale and leaseback. BCM were able to help set up a new vehicle, in which TP retained a 15% stake, with the majority of the equity injection coming from Invista Real Estate, JOHCM, Colliers Capital and BCM Investments. The new vehicle acquired a £35 million portfolio of trade counter properties leased to TP. The fund has since acquired a retail warehouse in Hereford let to Wickes on a short lease, regeared with TP who took a new 20 year lease with fixed rental uplifts and retained the asset. The fund is exploring further opportunities to combine the strategic knowledge of the tenant to create added value.

In 2006 BCM Investments were part of a joint venture which acquired the preferential debt in previously listed property plc, Hampton Trust. The company owned a portfolio of high yielding multi-let assets in need of active management. The corporate structure of the company was also in need of radical restructuring and the assets needed to be refinanced. Since acquisition, BCM have been co-ordinating the asset management of the portfolio and have increased the initial income from c£1.3m pa to close to £2.5m pa. In December 2009 the company acquired a £43 million mixed portfolio from the administrators of WG Mitchell. The strategy is to manage the properties and carry out a phased disposal. This program is already significantly ahead of target.

 

BCM News

Ahouvi’s €50m Irish supermarket sweep

Israeli investor brings rare bit of activity to market and returns to UK

Israeli investor Igal Ahouvi is to buy more than €50m of supermarkets in Ireland and has returned to the UK market for the first time since 2009.
The 58-year-old Tel Aviv-based investor this week completed his first deal in the republic, buying a Tesco store in Roscrea in North Tipperary for €13m.

He is due to complete his second purchase, a €5m supermarket in Dublin, next week and has agreed to buy two further Tescos for a total of €35m. The net initial yields on the purchases are around 7.5%.

Ahouvi will buy the assets either through his private vehicle, Blenheim, or his Tel Aviv-listed company, Ravad. He is being represented by his long-term adviser, Andy Barrs, who is now a consultant at investment agency BCM.

 

Investment agency BCM has taken on investment agent Andrew Barrs as a consultant as part of its expansion

Barrs will join next week and the firm will relocate to new offices at Grosvenor Street in Mayfair. BCM will take on all Barrs’ clients, including Igal Ahouvi, the Israeli-based investor who has up to $2bn to invest in property across Europe. Barrs was joint founder of Barrs Freer Smith and is Ahouvi’s sole adviser. The firm has also poached Rodney King, associate at Knight Frank, to work on Ahouvi’s portfolio.

BCM was founded in 1996 as Brown Cooper Marples by three former Weatherall Green & Smith agents — John Brown, Philip Cooper and Paul Marples. Marples went on to form a property listing service that was bought by CoStar. Partner Andrew Riley joined from Franc Warwick in 1998 and bought out founding partner John Brown, who retired. The 14-strong firm includes partners Philip Cooper, Andrew Dobson, Tim Wills, Riley and John Reavley.

The firm is leasing space from landlord Propinvest at 17 Grosvenor Street. Its clients include Invista, Threadneedle, Wichford, Catalyst Capital and wealthy UK and overseas investors.

Andrew Barrs said: “While there is clearly a vast amount of money seeking investment opportunities, there is a need to ensure that the property basics are correct. I don’t think anyone can be sure of which direction the market will take over the next period. If you are patient and well informed, the investments made in this volatile period will, in our opinion, show long-term success. “

Riley added: “We believe things are likely to get worse before they get better. But, as a practice, BCM has been innovative and has advised and invested in different markets and structures to reflect the changing climate.”

 

Mayfair Capital Investment Management has bought two industrial properties in Langley, Berkshire, for £7m, taking assets under management for its charity fund past £100m.

The two warehouses are let to Satellite Information Services Ltd on 14.5 year leases. The acquisition represents a 7% plus yield to the Property Income Trust for Charities.

SIS is a company formed out of the BBC Outside Broadcast unit when it was privatised by the BBC.

Fund director, James Thornton, said, “This latest acquisition is consistent with our aim to increase the fund’s weighting to the South East and it is pleasing that the Fund has now passed through £100 million. Despite the flattening out of yields, the Property Income Trust for Charities yields over 7.5% to new investors and remains in demand from charities requiring high income. With the gross redemption yield on 10-year gilts remaining at below 3%, the fund offers double the income yields available from both gilts and equities.”

Brown Cooper Marples acted for the vendor, a client of Invista Real Estate Investment Management, whilst the fund was represented by Steadman Brierley and Drivers Jonas Deloitte.

 

Wichford has bought The Crescent Centre in Bristol from Henderson Global Investor’s CASPAR fund for £14 million.

The building, an 88,000 sq ft, multi-let, 1970s office, has been bought for a net initial yield of 7.89%.

Rental income is £1.2m a year from tenants including HM Revenue & Customs which occupies 84% of the space.

Martin Payne, CASPAR’s portfolio manager said: “Having seen the value of the CASPAR fund increase by over 9% in the final quarter of 2009, the sale of The Crescent Centre is a good example of our strategy of making selective disposals of assets where we can realise the value we have created through our ongoing asset management programme and take advantage of both current pricing levels and the demand for good quality well let properties.
“The disposal will also allow us to continue with the early repayment of our debt in order to put CASPAR in the strongest and most flexible position for the future.”

Henderson Global Investors was represented by NB Real Estate while Brown Cooper Marples acted for Wichford Plc.

 

Development Securities and Berkshire Investment Capital have bought the original Body Shop headquarters in Littlehampton, West Sussex

The £7.6m price paid reflects a net initial yield of 9%.

The 6.4 acre edge-of-town complex comprises 70,000 sq ft of short-let warehousing and 30,000 sq ft of long-let offices. The buildings are let on three leases to Body Shop. Options for refurbishment will be drawn up for the warehouses.

This is the second joint venture between DevSecs and Mayfair-based Berkshire, which was set up by Steven Glancy and Nigel Reynolds.

In March the pair sold their 100,000 sq ft residential and commercial scheme in Wallington, Hampshire.

BCM acted for DevSecs and Berkshire; Michael Elliott & Partners acted for the vendor, Marcol Group.

 

Propvest hopes 55 acre site in Kent proves to be a dead cert. Aditi Shah reports

From the edge of the semi-derelict Old Kemnal Manor site at Chislehurst in Kent, the view stretches as far as Canary Wharf.

This was a key factor in Propvest Land & Development Consultancy’s purchase of the 55 acre site. The south-east developer is turning the land into a cemetery, after gaining planning consent earlier this year for a £15m first phase.

The development is being funded with an equal quantity of bank debt and equity from a consortium of investors, among them Gresham House, which has a 10% stake, and investment agency BCM Investments.

Work will begin imminently on redeveloping 10 acres into a graveyard, a chapel and car park. There will also be a memorial garden with sculptures, lakes and pine trees. The work is expected to take 40 weeks.