Landmark wins LPC ground rent bidding war

Landmark Investments Group has bought a portfolio of ground rents in Salford from LPC Living for £1.2m at a yield of 3.86%.

The portfolio consists of a number of developments across Salford, including Hulton Square and Radclyffe Park. The portfolio totals 611 houses and apartments developed over the last five years.

The £1.2m purchase, which was won through a competitive bidding selection process, takes Landmark's whole commercial and residential ground rent portfolio over 10,000 units, with a value of approximately £12m.

Mark Hawthorn, managing director of Landmark, said: "Although the price paid is very strong and was done via competitive tender, we are happy with our purchase. The profile of the stock sits very well within our larger portfolio and will perform very well over the life of the asset.

"We are geared around 55% and are now using private funds as opposed to bank debt which gives us far greater flexibility and spending power. The purchase was complex due to the size of deal, but both lawyers were prepared to work late to ensure a quick completion was effected."

Patrick Sheehan, associate solicitor at Irwin Mitchell, acted for Landmark. Mary Thakkar, partner at Gateleys, acted for LPC Living.

LPC Living is owned by the Pervaiz Naviede Family Trust.

Simon Ashdown, director of LPC Living, added: "Naturally we are very pleased to be able to get such a strong price and the capital received from the sale represents a very healthy profit for LPC. Landmark won a closely fought tender process, which involved a number of bidders and once agreed proceeded to completion quickly. We had built the portfolio up as a by-product of our regeneration partnerships with the local councils."

Ground rent is a regular payment paid under lease terms by the owner of a leaseholder property to the freeholder. They are most common in residential properties such as apartment buildings.

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