27th February 2020
Rougemont completes four investment deals worth £11M
Rougemont, a leading Yorkshire-based commercial property investment company, has recently completed four new strategic acquisitions, worth £11 million.
Founded in 2009, Rougemont is one of the UK’s fastest-growing privately funded property investment managers and syndicated property investment companies, with over £120 million of commercial property under management.
Rougemont owns and manages a significant number of prestigious properties across the UK on behalf of its High Net Worth clients, including the Marshall plc headquarters near Leeds; Ward Hadaway Solicitors’ headquarters on Newcastle’s Quayside; and a Diageo plc bonded whisky maturation warehouse near Edinburgh.
Rougemont’s most recent purchases include established office locations in York, Sheffield, Glasgow and Bristol.
James Craven, managing director, explained: “Our investment strategy has, in the past, been focused towards acquiring long-term income with yields in excess of 7.50% per annum. However, the recent squeeze on pricing, due to the weight of available national and international investor money in the market, has made long-term income too expensive.
“In order to continue being able to deliver attractive returns for our investors, we have had to reassess our strategy. We are therefore now focussing on strategically-located opportunities which are, primarily, in large regional cities; are easily accessed by good transport infrastructure; and which are underpinned by a low passing rent in areas of strong occupier demand.
“Our recent acquisitions reflect this new approach, and combined with our pro-active asset management initiatives, we are delivering an increased rent roll and a capital appreciation across the portfolio.
“Rougemont’s investments are structured to deliver attractive returns and income security for our clients. For example, our recent purchase of the Ruskin Building, Sheffield, is yielding 8.60% per annum income return without any bank funding,” said Mr Craven.
Rougemont’s track record is impressive. For example, in 2018, the company undertook a restructuring of its Diageo tenanted property in Scotland resulting in an average investor return of 11.25% per annum during the first five years of ownership. More recently, the company crystallised an average investor return of 11.5% per annum following the sale of an asset acquired in 2012.
James Craven added: “It’s been an exhilarating 11 years for us. We have created a significant and diverse portfolio, incorporating property assets in a variety of locations, property classes and tenant sectors, which continues to increase in capital value and return strong annual income distributions for our clients.”