Otium Real Estate has launched its Otium Leisure Ventures II fund, a second fund exclusively focused on leisure property investment, and announced its first acquistion – a leisure complex in the Isle of Wight.
The new fund has raised sufficient equity to acquire a further £200m of leisure assets via the same pool of international investors that backed the first fund at its launch in November 2014.
HDH acted for Otium on the fund’s first acquisition, the purchase of the Coppins Bridge scheme in the Isle of Wight from Aviva Investors. The 73,605 sq ft property comprises the Isle of Wight’s only multiplex cinema and a range of tenants including Cineworld, Pizza Hut, KFC, Office Outlet and Fever Bars.
The property is located in Newport in the centre of the island close to supermarkets and out-of-town retail. The property benefits from two car parks and covers a 4.66 acre site.
The purchase was made at a price of £12.95m reflecting a yield of 7% of a rental income of £970,169 per annum.
Ashley Blake of Otium said: “Following on from the success of our first fund, we were keen to invest further in this exciting and dynamic sector and fund II enables us to add to our portfolio. We are keen to acquire further leisure assets during 2018.”
Peter Schaverien, our Director for Out of Town Retail and Leisure commented, “We are delighted to have acted on behalf of Otium on this acquisition and now look forward to implementing our asset management plans for the park.”
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