Epiris has announced that Electra has sold Pine Unit Trust as part of a wider transaction that saw Epiris raise £95m.
PINE Unit Trust is a freehold investment property portfolio focused on the UK education sector. Epiris has sold this to the Universities Superannuation Scheme for GBP95 million.
Electra Private Equity has received proceeds of GBP50 million from the sale of PINE, an uplift of GBP10 million or 25% and equivalent to an increase in its NAV of 24 pence per share on the valuation of Electra’s investment at 30 September 2016. Inclusive of cash proceeds received prior to the sale, Electra has received total proceeds of GBP83 million from its investment in PINE, equivalent to 1.9x original cost and an IRR of 14%.
Established in 2005, PINE is a Jersey Property Unit Trust created to build a freehold investment property portfolio focussed on the UK educational sector. PINE owns a portfolio of UK properties leased to third-party operators.
PINE was managed throughout the period of operation by Harry Hyman’s Nexus Group. CBRE advised on the sale. Nexus PINE’s website is available here
Nexus PINE aims to deliver strong returns by acquiring assets that are let on long term leases to excellent educational providers where the asset value substantially underpins the investment value. Our existing portfolio benefits from an average weighted unexpired term in excess of 20 years and the majority of our rents are annually reviewed in line with the Retail Price Index.
Nexus PINE considers a wide range of operational businesses as tenants from providers of special educational needs to private or state funded primary and secondary schools to nursery schools.
Through the security of the covenants which our tenants provide, the long term nature of their full repairing and insuring leases and the indexed rent reviews the fund is able to maintain a high running yield, with a low cost base which maintains attractive returns.
ELTA : Electra has sold Pine Unit Trust