Otium launches second leisure fund with Isle of Wight site
Otium Real Estate has announced the launch of its second fund, Otium Leisure Ventures II, along with its first acquisition.
The fund will focus solely on leisure property investments such as leisure parks and city centre leisure sites, along with single assets such as cinemas and health clubs.
It has purchased the Coppins Bridge scheme on the Isle of Wight from Aviva Investors for £13m – a 7% yield.
Otium Real Estate has announced the launch of its second fund, Otium Leisure Ventures II, along with its first acquisition.
The fund will focus solely on leisure property investments such as leisure parks and city centre leisure sites, along with single assets such as cinemas and health clubs.
It has purchased the Coppins Bridge scheme on the Isle of Wight from Aviva Investors for £13m – a 7% yield.
The 73,605 sq ft property is home to the island’s only multiplex cinema and tenants including Pizza Hut, KFC, Office Outlet and Fever Bar.
It generates £970,169 pa in rental income.
The new fund has raised £200m of equity for acquisitions, and will target assets that can deliver value-add opportunities.
The same pool of international investors who backed the first fund at its launch in 2014 have backed the new vehicle.
Ashley Blake, chief executive of Otium Real Estate, 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.
Andrews said: “It’s doubly exciting for us as a team as our first completed transaction as a team at KLM Retail.”
Harper Dennis Hobbs advised Otium Real Estate.
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