UK: Global investment manager L1 Capital has acquired the Hadrian’s Tower build-to-rent (BTR) development in Newcastle, in an off-market transaction.
L1 Capital has acquired the 27-storey residential building in Newcastle city centre in a transaction with administrators who were represented in the deal by property consultancy Allsop.
The building comprises 159 apartments and a rooftop commercial unit leased to a champagne bar and restaurant.
The building is also supported by a dedicated residents’ lounge and concierge services.
L1 Capital’s acquisition includes 57 fully let apartments, the top-floor commercial unit and the freehold interest.
Completed in 2020, Hadrian’s Tower is fully let. The property also generates income from commercial and ground rent.
David Lamm, CEO of L1 Property, L1 Capital’s UK residential property fund, said: “Hadrian’s Tower is a great addition to our residential portfolio. It is a high-quality property providing strong levels of income in an exciting regional city. Newcastle has attractive fundamentals, enabling us to capture reversion on both an asset and market level. We’re delighted to have completed on this complex acquisition and look forward to actively managing it over the years ahead.”
James Wilson at Allsop was the selling agent for Hadrian’s Tower on behalf of Joint Administrators Nedim Ailyan and Ben Stanyon at FRP Advisory. He said: “The sale of Hadrian’s Tower demonstrates the continued appeal of high-quality, income-generating residential assets in strong regional centres. With its prime location, diversified income profile and long-term potential, the building attracted significant interest. While the transaction involved a number of complexities, we’re pleased to have supported FRP Advisory in navigating the process through to the successful completion of this deal.”
Squire Patton Boggs acted for the vendor with L1 Capital, advised by David Kanter and Daniel Lipman of Mishcon de Reya.
Highlights:
– L1 Capital acquired Newcastle’s Hadrian’s Tower in off-market residential deal
– The 159-unit BTR tower includes a rooftop commercial space, leased to a bar and restaurant
– Hadrian’s Tower is fully let, including champagne bar and concierge services
