Courage Yard investment launched

Courage Yard investment launched

September 05, 2018

Columbia Threadneedle has appointed property adviser JLL on the sale of the freehold investment of Courage Yard, Shad Thames, SE1, with offers invited in excess of 89m, reflecting a net initial yield of 5.0%

Courage Yard has been comprehensively refurbished and comprises seven buildings located on a 2.2 acre freehold site on London's Southbank, providing 67,900 sq ft of office space and 17,900 sq ft of retail accommodation in addition to 160 residential units and 300 car parking spaces.

It is only the second time in 30 years the investment will have traded, demonstrating the rarity value of an opportunity of this nature.

The office space was pre-let to Zoopla Property Group, as its global HQ campus, until 2031, providing 13 years of secure income, with guaranteed rental performance in 2021 and 2022. Zoopla Property Group has continued to expand into the campus and has recently been acquired by the tech investor Silverlake for 2.2bn, given the growth prospects for the covenant. The income for Courage Yard totals circa 4.75m per annum with 73% of the total rent payable by ZPG Ltd.

Rob Corbett, director in London capital markets at JLL, said: "Courage Yard represents a rare opportunity to acquire a freehold site in one of London's most vibrant locations. Southbank is the capital's strongest performing submarket, with extremely low levels of supply and high demand that will support rental growth. In addition to the secure income provided by the office tenants that will facilitate attractive debt finance, the investment offers the opportunity to benefit from the areas ongoing regeneration and development."