Sale of Haddenham Business Park brings significant returns for Tavis House
Charles Irvine helps deliver project IRR of circa 28%.
Tavis House Properties has completed the sale of its industrial development project at Haddenham, Bucks. The final sales price for the completed 20-unit, 76,100 sq. ft business park is £13.5m. Boutique real estate capital advisory and investment business, Charles Irvine assisted Tavis House Properties throughout the life cycle of the project, including providing advice on the sale.
The Charles Irvine team has a long partnership with the project dating back to December 2018 when it initially advised Tavis House Properties on securing equity funding of £5.5m for the acquisition and construction of a new build multi-let industrial project located on the Haddenham site.
During the construction process, Charles Irvine further assisted the project by securing a Coronavirus Business interruption Loan (CBIL) of which £3.0 m was eventually drawn down. This resulted in the overall cost of capital being significantly reduced across the capital structure.
In addition, Charles Irvine provided asset management services through the marketing phase and just five months after practical completion of the building, 18 units out of the estate total of 20 units were reserved by occupiers, with a mix of lettings and owner-occupier sales.
The equity return on the project has been calculated at an Internal Rate of Return (IRR) of c. 28%. Based on the favourable profit share arrangements negotiated by Charles Irvine on behalf of its client, Tavis House made a significant return on the project. Charles Irvine also invested alongside Tavis House.
David Cunnington, Managing Director and Founder of Charles Irvine said:
“This has been a rewarding process that required the provision of capital advice during the entire development process, including equity and debt capital raising as well as assistance with asset management activities.
Our partnership-approach with Tavis House enables us to act as its internal team, providing development appraisal and cashflow forecasting from beginning to end as well as capital advice and asset management services. Tavis House Properties has a strong portfolio strategy and this led us to co-invest alongside our client. Through this we have been able to harness true alignment and provide continual support and advice to help maximise returns for all capital partners involved, including ourselves.”