The Christopher Dee partnership has followed up its appointment by The Independent Order of Oddfellows Manchester friendly society with a £16m investment into four property assets across the UK.
Headquartered in Manchester, Christopher Dee is a niche partnership specialising in the analysis, acquisition and disposal of commercial property investment and development opportunities.
The firm also provides a portfolio asset management service for retained clients.
The new investments will complement the existing portfolio and are located in London, Edinburgh, Blackburn and Knowsley on Merseyside.
The properties are let to McDonalds, NHS Property Services, Wagamama and Go Outdoors, provide an average initial return of 6.5% and will add close to £1m per annum to the fund’s existing rental income.
The new debt was negotiated with Rothschild & Co and is the first time the society has raised additional capital in this way.
The unitised property fund provides returns for the society’s 129 Branches as well as central funds and has a current value in the region of £65m, consisting of a diverse fund of commercial property assets.
The fund holds investments in locations including central Manchester, Edinburgh, South Kensington and Notting Hill in London.
Tenants include Aldi Supermarkets, Travelodge Hotels and Network Rail.
Jane Nelson, chief executive of the Oddfellows said: “The Oddfellows has a long and successful tradition of investing in the property sector, and this year we have been particularly proactive.
“As a result of our hard work, the fund size and its overall returns have improved significantly. I am now eager to maintain the momentum we have generated during this year and to carry this forward into 2018.”
Chris Jones, partner at Christopher Dee said: “The debt-raise and swift deployment of the capital into the market has maximised returns for our client. We have focused on stock that can cope with the inevitable changes in the market that are now being properly contemplated by professionals dealing in the sector.
“With signs that Brexit is now beginning to impact in a negative way in several property sectors, and as occupier demand, stalled by uncertainty, is no longer a given, it will be quality, well-let stock that will prevail over the next few years.”
Ros Harper, director at Rothschild & Co, added: “We are extremely pleased to have been selected by Oddfellows’ to provide funding through our Real Estate Debt Management platform.
“This offering, focused on the regional markets, provides senior debt facilities, secured against UK commercial real estate, to property companies and investors. We look forward to working closely with the Society and Christopher Dee to support their commercial investment property portfolio strategy over the long-term.”