Chapel Quarter – Nottingham, UK
Chapel Quarter is located in Nottingham, United Kingdom. The property is 145,000 sq ft and was built in 2003. The investment is an island block near the city center strategically placed between the office and retail hubs of the city. The building is a mixed use scheme comprising retail/F&B units on ground and first floor levels, a Holiday Inn Express over five levels, and four upper floors of office space. In addition, the ground floor F&B tenants front on a popular pedestrianized destination.
The investment has institutional characteristics; it is modern, centrally located and is mixed-use and multi-let nature. It has been poorly managed enabling an off market acquisition, below market value. There are a number of straight forward value add opportunities which have been achieved. There is limited vacancy, which with a new leasing strategy has been leased at 100%. In addition, Management has upgraded the entrance lobby and exterior signage to the approval of tenants. The last remaining goal is an extension of a tenant’s lease which is currently ongoing.
The property offers a robust, defensive cash flow with a realistic likelihood of negotiating and extending the current leases while leasing the vacant space to reposition the property for sale back into the UK institutional market. The investment is financed by DutchPost Bank.
This investment has now been sold. For further information click here