Maximising returns on investment:
Acquisition of Burford Debenture
A portfolio funded by Debenture Loan Stock was acquired by Marcol company CGIS from Burford Group. The portfolio included three core assets - shopping centres in Glasgow and Birmingham and an industrial site in Dunstable – as well as 16 smaller assets located throughout the UK.
Following a thorough assessment of the portfolio, Marcol made the decision to immediately dispose of all smaller assets and subsequently dispose of the three core assets. The funds were reinvested in better performing properties, predominantly located in London. These included the iconic Grade I Listed Royal Exchange in the heart of the City and the Grade II Listed Savoy Court, a retail and office building located on the Strand.
Through opportunistic trading and pro-active asset management, the value of the portfolio has risen by 50%.
The resulting increase in equity enables CGIS to acquire higher quality assets, leading to continued growth and lessening the cost of the debenture to the portfolio.