SINGAPORE (Nov 26): Elite Partners Capital, the Singapore-based private equity firm, has acquired a portfolio of commercial properties in UK for £282.15 million ($508 million) from Telereal Trillion.

The Hayhill portfolio comprises 97 freehold offices, with 85% of the properties located in town centres across UK and measuring a total of 2.6 million sq ft.

Approximately 99.4% of the rental income is secured against the covenant of the UK Secretary of State for Communities and Local Government.

Currently, the portfolio is being let to UK’s Department for Work and Pensions, the country’s largest government department, on 10-year full-repair and insurance leases with built-in rent uplifts. The lease commenced on Apr 1, 2018 and will expire on Mar 31, 2028.

In a media release issued on Monday, Elite says that the portfolio has potential for capital gains upon asset enhancement. Hence, it intends to undertake active asset management and enhancement initiatives.

Victor Song, CEO and manging director of Elite, as well as one of the founding partners of Viva Industrial Trust says, “With attractive geographical spread, let on brand new leases to the undoubted covenant of the UK Government, the portfolio offers low-risk sustainable long-term yield.”

“The investors of the fund can expect strong and stable income, coupled with potential upside from rental reviews and capital gains through asset enhancements and conversion for alternate uses. We will continue to look into acquiring new assets for this fund,” Song adds.