Project
Over a number of years, Eddisons has been appointed by a London-based property company to identify suitable new investment opportunities. The company’s investment strategy focuses on secure, long-income commercial property investments ranging between £1 million and £10 million.
The portfolio has since expanded to include a number of high-profile assets, including a PLC Bank with over 30 years of unexpired lease term, a supermarket let to a top-four PLC food retailer on a lease exceeding 60 years, as well as other specialist sector assets.
Approach
With the client receiving limited returns from non-property investments, Eddisons applied a rigorous, criteria-driven selection process to source investments that would deliver both security and longevity of income.
Rather than pursuing volume, the firm remained selective, declining several attractive opportunities that did not meet the client's precise requirements. One such opportunity that did align was the Premier Inn hotel in St David’s, Pembrokeshire, acquired via a forward funding agreement.
Thanks to a strong understanding of both the investment market and funding mechanisms, Eddisons led negotiations for the acquisition, working closely with the landowner and developer who lacked the capital to fund the project independently.
Results
A tailored set of Heads of Terms was drawn up, outlining a forward funding structure that offered guaranteed exit terms for the developer and long-term benefits for the investor.
Despite the challenges posed by COVID-19 restrictions, all critical timescales were met, including the Agreement for Lease with Premier Inn. Construction commenced in late 2020, and the hotel was on track for completion in Q3 2021.
This strategic acquisition has further strengthened the client’s secure income portfolio, demonstrating Eddisons’ expertise in sourcing and structuring complex property investment deals.
