Law firm Howard Kennedy advise on major £60m ground rent sale
Law firm Howard Kennedy is advising Eco-World Ballymore JV on the sale of a major ground rent portfolio.
The sale includes ground rent receipts from more than 2,500 units across the three waterside development schemes – Embassy Gardens, SW8 (phase 2), London City Island, E14 (phase 2) and Wardian London, E14. The annual ground rent income from the portfolio exceeds £1.6m, with the sale having exceeded £60m.
The three schemes are being developed in a joint venture between Eco-World and Ballymore, with the ground rent portfolio being sold by the joint venture companies.
The three sites are all currently under development, with completions phased between 2018 and 2021.
This is a significant ground rent portfolio and attracted considerable interest, and we are delighted to be a part of this landmark deal. Howard Kennedy has this year alone been involved in the sale of ground rent portfolios with a value exceeding £200m, with investors attracted to the stable and long term returns.
Dato' Teow Leong Seng, EcoWorld Ballymore Director, said:
This sale concludes a successful year for EcoWorld Ballymore, we have overseen the transaction of over £400m in private residential sales and confirmed two affordable housing deals. In an uncertain market the JV have exceeded expectations and we are on track for a strong 2017.
CBRE acted for Eco-World Ballymore JV as commercial agent. The CBRE team was led by Arthur McCalmont.
In a turbulent economic and political environment, high quality large scale ground rent portfolios have become increasingly popular with investors looking for safe, secure income. EcoWorld Ballymore’s decision to transact at an optimum time meant they were rewarded with a fantastic receipt.
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