- Chapel Quarter is located in Nottingham, United Kingdom. This office property comprises 145,000 sq ft and was built in 2003. The investment is an island block near the city centre 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’ frontage overlooks a popular pedestrianised area.
- The investment has institutional characteristics; being modern, centrally located and of mixed-use and multi-let nature. Management issues enabled an off-market acquisition at below market value. Kout Capital acquired Chapel Quarter with a planned five-year holding period.
- During the investment period, there were a number of straight forward value-add opportunities which were achieved. Management employed a new leasing strategy and converted void space into Grade A office space and renovated common areas resulting in 100% occupancy. The property offered a robust, defensive cash flow with a realistic opportunity to extend current leases while filling the vacant space to reposition the property for sale back into the UK institutional market.
- Chapel Quarter was sold to a UK investment fund. The investment was financed by DutchPost Bank.