Melburg snap up 110,000 sq ft Bekaert HQ in off-market back to back
Melburg Capital [Melburg], announce the acquisition of the Bekaert manufacturing HQ, a 110,000 sq ft industrial asset located on Park House Road, Bradford in an off-market transaction.
The asset was acquired with a short term lease expiry to Bekaert, the world’s largest steel wire manufacturer. In advance of completion Melburg re-structured the lease, resulting in the €5.0Bn turnover business signing a 15 year commitment with 2-5% RPI indexation.
The acquisition is Melburg’s eleventh within the last 12 months, taking their total spend to over £1Bn as the highly discreet privately owned real estate investment and development company continues to increase its logistics’ presence, which now exceeds 2 million sq ft throughout the UK.
Melburg chief executive Jack Burgess commented;
“As a key employer Bekaert’s long term commitment to their Bradford HQ is hugely positive for the area. The business itself is thriving, posting a year on year revenue increase of 28.00% to €5Bn. With double digit operating margins and €791 million of cash on hand the balance sheet growth prospects are compelling. The physical real estate is ideally located and we look forward to working collaboratively with Bekaert to continue to optimise the facilities operations”
Melburg was advised by Newson Real Estate.
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Melburg sells Swan Lane Industrial Estate for £15m
Melburg Capital Ltd [Melburg] – the privately owned real estate investment and development company announces the sale of Swan Lane Industrial Estate, Wigan to a private family office.
Melburg acquired the 300,000 sq ft industrial estate off-market in 2020 as part of a sale and leaseback with the owners of domestic appliance producer G2S Limited for £8.75m.
Following their acquisition Melburg repositioned the estate within a 24-month window through tenant engineering and close-quarter asset management. In so doing their team of skilled management specialists leased 100% of the estate, increased the passing rents by 55% and moved the WAULT from 3.00 to 6.23 years.
The sale follows a period of significant activity for the expanding investment specialist, having acquired in excess of 2 million sq ft of industrial assets, released plans for one of Bristol largest regeneration sites, with 880 new homes set to replace the Broadwalk Shopping Centre, and discreetly divested from £150m of assets including Warehouse K, London, Maxmor House, Dartford and 14-18 Belgrave Gate, Leicester.
Melburg CEO Jack Burgess commented;
“The life cycle of Swan Lane highlights the platforms ability to identify off-market value propositions, understand occupiers operational drivers, quickly execute complex management initiatives and realise exceptional risk-adjusted returns. The proceeds from the sale will be redeployed into similar opportunities”
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Melburg appoints head of asset management
Melburg Capital has appointed Andrew Burns as head of asset management.
Burns will have overall responsibility for the group’s asset and development management activities while also sitting on the investment, management and sustainability committees.
He will be based in London and report to the chief executive Jack Burgess.
Burns has 17 years’ experience in commercial real estate and joins from London & Regional Properties, which he joined in 2018.
Burgess said: “Andrew’s appointment highlights our continued commitment to delivering best-in-class close-quarter management initiatives across the portfolio.
“His enthusiasm, work ethic and entrepreneurial spirit is very much reflected within our corporate culture. We are pleased to welcome him on board.”
Burns added: “Melburg’s five-year annualised returns and growth trajectory have been outstanding. It is a testament to the team’s hard work and ability to identify opportunities through a data-driven approach while executing intricate management initiatives in a collaborative way.
“I am looking forward to making a positive contribution to the growing platform.”
View Property Week article here.
Cinema and up to 880 new homes to replace South Bristol shopping centre
One of South Bristol’s biggest shopping centres could be demolished to make way for up to 880 new flats, a two-screen cinema, library and new shopping streets.
Developers have offered their first official submission to council planners for their vision to transform the Broadwalk Shopping Centre at the heart of Knowle into ‘Redcatch Quarter’, a new development more in the mould of Wapping Wharf, with 12-storey blocks of flats either side of a new pedestrianised street lined with shops, restaurants and bars.
Bristol Live first revealed the plans back in January, and since then the developers have conducted a consultation and an exhibition of what they want to do to the landmark 1970s shopping centre on the junction of Wells Road and Broad Walk in Knowle.
Now, the developers have made their first submission to Bristol City Council’s planning department, asking whether they need to include an environmental assessment when they do eventually submit a formal planning application.
And it reveals for the first time officially the scale of the development, which will occupy almost all the space between the Wells Road and Redcatch Park.
The developers said the site could have up to 880 residential dwellings, 7,430sqm of commercial floorspace, 190 sqm of community use, a 320sqm library – which would replace the library that’s in the existing Broadwalk Shopping Centre and 870 sqm given over to a cinema or theatre. On top of that, the developers say the site will include 360 car parking spaces, mainly in an underground car park underneath the development, and cycle parking for a total of 1,455 bikes.
The development would create new streets – one would be a pedestrianised street going from Wells Road to a new entrance to Redcatch Park, and a second would be a service road for the development which would cut across north-south from Redcatch Road almost to Broad Walk.
The site already has planning permission for the shopping centre to be demolished and rebuilt with hundreds of flats. Before the pandemic, developers submitted a plan for 420 new flats and shops – again 12-storeys high – which was eventually given permission by council planners last year.
But the site changed hands and the new developers said the pandemic meant a change in shopping habits, so a new plan with more homes and less space for shops was needed.
The developers said they hope to submit a formal planning application for the new project this summer.
The artist’s impressions of the site reveal the 12 storey block of flats in one drawing would be located at the south western corner of the development site, closest to Redcatch Park on Broad Walk road itself, while the other residential blocks would be around six to nine storeys high.
If the development does end up having a cinema, in the long term it could be the only one in South Bristol, after planning permission was given last year for the Hengrove Leisure Park to be cleared – including the Cineworld multiplex there – for more than 300 new homes.
View Bristol Post article here.
Melburg CEO receives further nomination at the annual PROPS awards
Melburg Capital Limited [Melburg] are honoured that Jack Burgess, current Chief Executive and Founder has received a further nomination for Young Property Person of the Year at the 30th annual PROPS awards.
The PROPS are the UK’s longest standing property awards hosted by Variety. Since its inception in 1992, The PROPS, dedicated to the UK’s property industry, has raised over £10.8 million enabling Variety to provide 2,200 custom-built wheelchairs and other essential items to children and young people all around the UK.
The list of recipients of PROPS awards over the years includes some of the industries most celebrated figures Trevor Hemmings, Gerald Ronson CBE, Tony Pidgley CBE, Sir John Beckwith CBE, Sir John Ritblat, Sol Kerzner, David Lockhart, Michael Slade, Sir Stuart Lipton, David Pearl, and Nick Leslau.
Melburg promotes aspiring artists in collaboration with Bristol School of Art
Melburg Capital Ltd [Melburg] – the privately owned real estate investment and development company announces a collaboration with The Bristol School of Art following completion of refurbishment works at the 110,000 sq ft Bristol city centre office building, recently rebranded 360 (www.360bristol.co.uk).
Bristol School of Art forms part of the SGS College and runs 50 plus courses annually, with over 450 attendees ranging from first year Foundation students to degree courses as well as Part time Adult evening classes and Creativity for Wellbeing community courses.
Melburg engaged with the prominent local stakeholder, running an art competition to promote local aspiring artists and provide the opportunity to contribute towards the regeneration of its landmark office building.
360 Bristol has undergone a wholesale refurbishment focusing on the building’s sustainability credentials and occupier welfare and wellbeing. The repositioned building now includes a full-service gym, direct cycle in office access, a full suite of cycling facilities, yoga studio’s and a designated café and business lounge. A truly unique offering within the city centre. The space remains a key office hub for the NHS with the remaining 45,000 sq ft available to let.
Student artwork depicting Scenes of Bristol will be presented throughout the within the newly created café and business lounge providing the opportunity for the students to showcase their talent.
Kate Gwynne, College Operation Coordinator for Bristol Art School commented; “This has been a great project to be involved in, the students will really enjoy their work being within the public domain, for most of them this will be the first experience of exhibiting their work – hopefully the first of many!”
Jack Burgess, Chief Executive of Melburg commented; “We are thankful to have had the opportunity to work collaboratively with the Bristol School of Art. The volume of entrants and calibre of work was inspiring. The overwhelmingly positive feedback and success of the programme has cemented its inclusion in forthcoming projects around the city.”
Agents Knight Frank & Alder King represent Melburg, for further information relating to available office space please contact;
Andy Smith
0117 917 4537
Simon Price
0117 317 1084
Melburg CEO and Founder shortlisted for Young Property Personality of the Year
Melburg Capital Ltd [Melburg] are pleased to announce that Jack Burgess, current Chief Executive and Founder has been shortlisted for the Young Property Personality of the Year at the Property Awards 2022, hosted by Property Week.
The acknowledgement places Mr Burgess alongside a group of talented professionals and impactful businesses making a positive contribution to the industry.
Former tobacco warehouse in London’s Docklands changes hands for £45m
Melburg Capital sells Warehouse K after securing a letting to the government.
What? Melburg Capital sells Warehouse K in London’s Docklands for £45m to Kajima Properties.
Why? Deal follows letting to the government accounting for half the income.
What next? Kajima hopes property will benefit from the opening of Crossrail.
Kajima has bought a Grade II-listed former tobacco warehouse in London’s Docklands for £45m from Melburg Capital, React News can reveal.
The company, which is a subsidiary of Japanese construction giant Kajima Corportation, is buying Warehouse K as part of a drive to expand it’s London office portfolio.
Located next to the ExCel Centre, Warehouse K comprises 108,479 sq ft of office, leisure and industrial space.
Melburg is thought to have paid around £30m when the building last changed hands in 2018. The company then went on to secure a letting to the Secretary of State for Houseing, Communities and Local Government, which accounts for about half the income. The lease runs until 2034.
After securing the letting, Melburg, which invests across a range of sectors, appointed Allsop to begin marketing the building.
The £45m price paid by Kajima reflects a yield of around 5.65%.
Kajima hopes that Warehouse K will benefit from its close proximity to the Crossrail station at Custom House when the rail line opens later this year. The building is also a short walk from the new City Hall for the Greater London Assembly at The Crystal.
Kajima signaled its intention to expand its presence in the London office market last year when it hired Tim James as investment director from Longmead Capital.
James said: ” Situated in a strategic location with significant regeneration and infrastructure improvements occuring within close proximity, this asset offers strong long term growth prospects whilst also providing secure income off sustainable base rents. As we exit the pandemic, the London office market continues to remain resilient and Kajima is commited to driving investment and growth in this market where we identify value.”
Other London assets in Kajima’s portfolio include 77 Coleman Street in Moorgate, which was redeveloped in 2021, and Orwell House in Fitzrovia, which was acquired from British Land in 2020.
Fineman Ross advised Kajima on the deal. Allsop advised Melburg Capital.
View React News article here
Melburg closes 560,000 sq ft off-market Wakefield double
Following the acquisition of the 350,000 sq ft Sirdar Business Park, Melburg Capital Ltd [Melburg] announce the off-market acquisition of Wakefield 41, a 210,000 sq ft single-let industrial asset located within Wakefield’s premier industrial park.
The deal was agreed with a private family office, Melburg’s ninth acquisition within the last 12 months, taking their total spend to over £850m as the highly discreet privately owned real estate investment and development company continues to increase its logistics’ presence.
The unit is single let to YM Chantry, part of the York Mail Group for a further 13 years and subject to RPI linked rent reviews. The price reflects a net initial yield of approximately 8.50%. The unit is adjacent to junction 41 of the M1 and houses the largest Coca-Cola bottling plant in Europe along with several large-scale occupiers including Morrisons, YPO and Menzies.
Jack Burgess, Chief Executive of Melburg commented; “The asset is located within the most established industrial park in West Yorkshire, where availability remains below 2.8%. The data points are incredibly strong for continued rental growth and supply shortages. We remain committed to selectively deploying capital as our industrial platform, which now exceeds 2 million sq ft, continues its organic growth”
Harris Associates acted on behalf of Melburg. BOS LLP and Freedman + Hilmi LLP provided legal and structuring services.
We thank Property Week for the coverage, click to view news article here
Melburg buys 350,000 sq ft multi-let industrial asset in Yorkshire
Melburg Capital has snapped up a 350,000 sq ft multi-let industrial asset in Wakefield, West Yorkshire, Property Week can reveal.
Sirdar Business Park is a 16.5-acre site which was sold to Melburg by a private Yorkshire-based family office in an off-market deal. Sirdar Group, a knitting and yarn distributor, occupies 198,000 sq ft at the site, accounting for 55% of the estate by floor area. Sirdar has recently expanded its footprint to facilitate the continued growth of its Sirdar and Tilsatec brands and has occupied the site for more than 30 years.
The estate is fully occupied and let at an average rent of £2.45/sq ft. Melburg said it will “undertake a rolling refurbishment programme as well as several estate management initiatives and in so doing drive the rental tone”.
A spokesperson for Melburg added: “We continue to adopt a data-driven approach, selectively deploying equity into geographies and sectors where there is an acute supply-demand imbalance. The asset has a captive tenant base, lies within one mile of Junction 40 of the M1, within a location with a sub-3% vacancy rate, and was acquired at a 25% discount to residual land value.”
View Property Week News Article Here.
