Ellandi fund’s Great Yarmouth debut
Posted by Property Week on 1st Nov 2013
Mark Robinson and Morgan Garfield’s Ellandi has raised its own fund with the capacity to invest around £130m into distressed retail properties and has now bought its first asset.
The Ellandi Retail Fund has raised around £60m from a European institution and will access debt from Chenavari, taking its total investment capacity to around £130m. The fund will also be open to additional investors in the future.
The pair has now secured the first asset for the fund, the 216,000 sq ft Market Gates Shopping Centre in Great Yarmouth, which it has bought from administrators at Deloitte for around £28m and a low 9% yield.
Refurbished in 2008, Market Gates (pictured) is anchored by Debenhams, New Look and Wilkinson.
The scheme was formerly owned by Miller Group and was sold through Lunson Mitchenall. Pradera was asset managing the scheme for the administrators.
Garfield said: “We see an excellent opportunity to build a portfolio that will provide a strong cash yield and significant capital growth prospects, derived from our asset management expertise. The fund is structured in order to have the flexibility to attract further investors in due course.
“The Ellandi Retail Fund is actively pursuing additional acquisition opportunities and we are also continuing to build our relationship with established and new equity partners.”
He added: “We deliberately target convenience and value orientated shopping which we feel is better insulated from the threat of the internet due to the balance of spend and delivery charge.”
The fund is expected to deliver a yield of around 10%. Ellandi’s existing portfolio totals around £230m of shopping centres. It was advised by Douglas Stevens & Co on the purchase. Douglas Stevens and Roche are the letting agents on the scheme.