Savills acted on behalf of a consortium of different shareholders who wanted to dispose of The Collective Old Oak. The asset comprised 546 residential units and 16,000 square feet of amenity space for residents including a gym, games room, spa, library, cinema room and roof terrace. This was the first operational Co-Living scheme in the UK and as a result there was no market evidence for similar sales.
Savills collated an extensive list or relevant residential and student accommodation transactional evidence in order to demonstrate the underlying investment market for both asset types. The building was let to a mix of students and private tenants, which was a restriction within the planning permission. In addition to this, prospective investors were provided with an extensive investment memorandum, backed up by a full marketing data room including fully assignable surveys - de-risking the sales process.
After an initial period of marketing and having received c.10 offers, terms were agreed with a quasi-institutional investor. However, they failed to achieve completion and as a result, the majority shareholders agreed to allow a single shareholder to undertake an MBO for a figure of approximately £115m.
We have now finally completed! Congratulations to us all on a great result. I would like to state that without Piers this result would not have been possible, he has done a fantastic job. His responsiveness, hands on approach and always being there to resolve issues was second to none! We are all very grateful.
Alex Tarlo, Shareholder