On 15th March, 2013, Long Harbour acquired 310 residential units across 20 sites, spread throughout England and Wales. At the time of acquiring the asset the majority of units were let under standard Assured Shorthold Tenancies ("ASTs") and had been managed by a dedicated lettings and property manager that was acquired as part of the transaction. Post completion, Long Harbour actively managed the portfolio maximising the rental returns with a view to selling down the assets and optimising profits and investor returns. 80% of the portfolio was sold within an 18 month period at an average profit of c.28%. The final asset was sold on 21 December 2015 with an overall cash on cash profit of c.29% achieved on the portfolio.
Long Harbour saw an opportunity to reposition and simplify what was a complex transaction involving multiple units across various regions, each with different market dynamics, into a bespoke portfolio that offered investors an attractive proposition while providing the vendor with a clear exit strategy, enabling them to sell each of its assets in one transaction. This approach provided our investors with a route into the UK residential market with immediate upside as a result of the discount achieved on acquisition, and an interim yield on assets held for sale.
Facts & Figures
- 310 residential units
- 29% average cash on cash profit achieved on asset sales
Since stabilisation of the portfolio sales process, in August 2013 Long Harbour has targeted the sale of at least 12 units per calendar month and has consistently outperformed this target.