Deal announcement - Merchant Property Unit Trust
1 March 2014
Connection Capital and Riverside Capital together with the Cubic Property Fund, which is listed in the Channel Islands, have acquired an 81.86% stake in Merchant Property Unit Trust “MPUT” which owns a portfolio of 35 trade park units in the UK that are let to building merchants, Travis Perkins. The remaining minority stake is held by Travis Perkins and Colliers International.
The Connection Capital syndicate, which comprised 23 investors, provided £5.8m of equity with the balance of £6.5m provided by the Cubic Property Fund alongside senior debt of £21.695m from Royal Bank of Scotland to refinance the portfolio.
The portfolio acquired under the deal totals 449,398 sq.ft. producing an annual rent roll of £2.3m. The 35 units within the portfolio are based in well established locations across the UK and the investment will be monitored by Riverside Capital going forward.
Travis Perkins is a FTSE 100 company specialising in the builders’ merchant and home improvement markets, and is a main supplier to the building and construction market. It supplies more than 100,000 product lines to trade professionals and self-builders from over 600 properties throughout the UK.
- Total funding: £5.8m
- Number of Connection Capital clients: 23
- Investment date: March 2014
- Sector: commercial property
If you are interested in receiving more information about future investment opportunities and are not yet a client of Connection Capital, please contact Steve Wilson.