L1 Capital has acquired the 27-storey Hadrian’s Tower residential building in Newcastle city centre in an off-market transaction from administrators FRP Advisory.
The landmark building, which was completed in 2020, comprises 159 high-specification apartments and a rooftop commercial unit leased to a champagne bar and restaurant. The acquisition includes 57 fully-let apartments, the top-floor commercial unit and the freehold interest in the building.
L1 Capital said the transaction was completed at a “meaningful discount to replacement cost and underpins attractive day-one income, with significant embedded reversion over time”.
As part of its UK residential strategy, the company is targeting high-quality assets with mid-market rents, that provide robust fundamentals and scope for income optimisation.
David Lamm, CEO of L1 Property, 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, partner at Allsop, which acted on behalf of administrators FRP Advisory, added: “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 and L1 Capital was advised by Mishcon de Reya.
