Ground Rent Acquisition
Sykes Capital has acquired a further ground rent asset in Surrey for £83,000, representing a gross yield of 6.94% (ground rent only), at the Allsop residential auction in August 2022. The acquisition is in line with Sykes Capital’s strategy of deploying capital into assets producing long term, low risk income. The acquisition took place on the same day the Bank of England increased the base rate from 1.25% to 1.75%, which will undoubtedly lead to significant further opportunities.
John Sykes receives Honorary Doctorate from the University of Reading
We are delighted to announce that on 21st July 2022, our Founder John Sykes was awarded an Honorary Degree of Doctor of Business Administration from the University of Reading. John was awarded this degree after his remarkable entrepreneurial achievements and, in more recent years, charitable contribution to the town of Reading.
He is a great believer that the University of Reading should also be a University for Reading and has worked closely with the University in recent years, including on a Community Engagement Fund, which is now in its second successful year, designed to support new community projects that benefit the people and community of Reading.
FirstPort acquires Atlantis Estates
For Atlantis’ customers, clients, and suppliers, this change in ownership does not impact their day-to-day interactions and the same Atlantis team and colleagues will continue to support them.
Both FirstPort and Atlantis are committed to delivering excellent customer service and making sure that the homes and communities in Atlantis’ care continue to be great places to live.
As part of the FirstPort group, Atlantis and their customers will be able to access FirstPort’s in-house specialist teams, as well as benefit from their on-going investment in new digital systems. Over the coming months, FirstPort will be working with the Atlantis team to help bring these benefits to life for their customers and clients.
Ouda Saleh, Chief Financial Officer at FirstPort, commented: “I am delighted to welcome Atlantis to the FirstPort group. Atlantis brings an outstanding track record of experience and knowledge in residential property management, which is recognised by customers and industry bodies alike. This reputation has been built by an outstanding team of colleagues, who will be a fantastic addition to the FirstPort family. I am looking forward to working with the Atlantis team to share our learnings and continue to build on their great work together.”
Annabelle Sykes, Chief Executive Officer of Sykes Capital, owner of Atlantis Estates commented: “We are delighted that Atlantis Estates is joining the FirstPort Group. We are incredibly proud of the business we have built over the last two decades, with an outstanding team that delivers a great service for our customers, so finding the right new home for the business was very important to us. The Atlantis values, particularly around a customer-first approach are very much aligned with FirstPort, making this a great fit for colleagues, clients and residents. I look forward to watching the business continue to flourish as part of the FirstPort group.”
7-9 Friar Street Disposal
Sykes Capital has disposed of their freehold interest in 7-9 Friar Street in Reading, with tenant Yates Wine Bar in situ, for £4.55m representing a gross yield of 4.73% in May 2022. Net profit after disposal comes to £3.93m, following 10 years of ownership. Coffer Corporate Leisure acted for Sykes Capital with Savills acting for the buyer.
Works commence on Office to Residential Conversion
After being granted planning permission, Sykes Capital handed over a site in Caversham in May 2022 to the main contractor to be converted into 3 self contained luxury apartments. The contract, which has a works value of £270,000, allows for the site to be handed back to Sykes Capital in completed form in December 2022 to join our residential portfolio.
Ground Rent Acquisitions
Sykes Capital has acquired a landmark ground rent asset in prime central London for £289,000, representing a gross yield of 7.68% (ground rent only), at the Allsop residential auction in February 2022. The asset has separate development potential and a pre-application pack has been submitted to Tower Hamlets council for early advise. Separately at the Allsop February auction, Sykes Capital acquired an additional ground rent asset in Reading.
Planning Round Up
Sykes Capital has applied for full planning permission in June 2022 for the construction of a new residential dwelling on brownfield land in west Reading. Separately, and following submission of a pre-application pack in April 2022, Sykes Capital has received advise from Reading Borough Council in relation to a large new build development in south Reading, following receipt of the advise a full planning application is expected to be submitted shortly. Finally, following the acquisition in February 2022, a pre-application submission for an additional residential storey has been submitted in relation to a central London asset.
The Village reaches 97% Occupancy
Sykes Capital has completed on 3 new commercial leases at The Village leisure destination in Reading between February and April 2022. The new occupiers will contribute to the cultural mix the site has on offer, with a high end lounge occupier signing a 15 year lease, a Churro’s takeaway (due to open in July 2022) signing a 10 year lease, and an Asian fusion restaurant signing a 20 year lease. The new leases, all with personal guarantees, provide a combined initial rent of £94,000. This leaves 1 vacant unit at the site, which is yet to be marketed.