Otium launches second leisure fund with first acquisition

By Paul Norman - Monday, March 05, 2018 16:08

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. The vehicle will target leisure assets that can deliver value-add opportunities.

The fund has made its first acquisition with 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.”

Will Andrews, Mark Smith and Jonny Perkins, who joined KLM from JLL in late 2017 acted for the vendor, Aviva Investors. The sale was their first transaction within KLM. Will Andrews said, “We are delighted to have acted for Aviva Investors on this transaction and delivered a successful disposal. It’s doubly exciting for us as a team as our first completed transaction as a team at KLM Retail.”

Peter Schaverien, head of out of town retail and leisure at HDH commented,said: "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."

HDH acted for Otium.


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