Henley exits reach £200 million following successful Milton Keynes sale

Private equity real estate investor Henley has completed the freehold sale of Avalon House, to a South African investor for £4.5 million. The sale represents a major milestone for the private equity real estate firm, having now completed 19 exits since its inception in 2006, at a total of around £200 million.

Located a mile north of Milton Keynes town centre, Avalon House comprises 30,284 sq. ft of high quality office accommodation split into two wings around a central reception, in addition to 90 car parking spaces. Built in the 1980s, the property initially consisted of office space and a warehouse in the north wing.

Henley agreed the sale at a yield of 8.5 per cent and representing a deal IRR of around 10 per cent and cash multiple of 1.4x Established in 2006, Henley currently has an average deal IRR of over 50 per cent.

Commenting on the sale, Ian Rickwood, Chief Executive Officer of Henley, said:

“This sale represents a pragmatic step in managing investors money. Whilst we had expected to deliver a higher return more in keeping with our performance, we felt that there was no guarantee that we could deliver the asset management initiative intended and therefore it made sense to bank a profit and move on to more attractive value add opportunities. The deal marks a noteworthy milestone for us as a firm. Our total all deal return continues to stand at more than 50% per cent, having now successfully carried out 19 disposals. Whilst we remain open to opportunistic acquisitions in the commercial sector, we largely expect to continue our focus on the sales side and would anticipate at least a further two exits this year.”

Avalon House is let in its entirety to marketing services group P&MM Ltd, which was recently acquired by Sodexo, the 18th largest employer in the world, on a full repairing and insuring lease until October 2020. Woodlands Business Park is located adjacent to the site and is home to occupiers including RAL Ltd, Wincanton Holdings Ltd, ED White, Your Cash and Zenith Staybrite Ltd.

Cushman & Wakefield acted for Henley and Farmer Real Estate Ltd for the purchaser.

Henley

Established in 2006, Henley is a leading UK private equity real estate investor focusing on development, investment and asset management in the commercial, residential, healthcare and debt real estate market. Since inception Henley has approximately doubled in size every year and is expected to do the same again in 2015. The company currently has around $900 million assets under management (as of March 2015).

Henley’s platform has nine separate divisions, all headed by an experienced entrepreneurial partner, Henley Space, a prime London residential development, HCRE, an opportunistic commercial investment, Henley Healthcare Investments, HPF (Henley Property Finance) a debt focused business, Henley 360 a European light industrial vehicle, Henley Camland a land infrastructure business and now Henley USA looking at new ventures including Waterwalk apartments. In addition, Henley is acting for a number of international family offices through its HFOA (Family Office Advisors) business, launched in February 2014. Henley is an entrepreneurial company that continues to back entrepreneurs.

For further information please contact:

Henley, Ian Rickwood CEO – 07717 134207

Redwood Consulting, PJ Appleton – 020 7828 5553

Redwood Consulting, Clare Hartshorne – 020 7828 5553

08 March 2016 | Press Release by Redwood Consulting