L1 Capital acquires Hadrian’s Tower
The investor has bought the 27-storey residential building in Newcastle city centre from administrator FRP Advisory, represented by Allsop.
Completed in 2020, Hadrian’s Tower comprises 159 apartments and a premium rooftop commercial unit leased to a champagne bar and restaurant.
The scheme was developed by High Street Group. Handling the sale, FRP had invited offers in excess of £14.6m.
L1’s acquisition includes 57 fully-let apartments, the top-floor commercial unit, and the freehold interest.
The property generates diversified income from residential, commercial, and ground rent streams, and is fully let. The building is also supported by a dedicated residents’ lounge and concierge services.
This acquisition forms part of L1 Capital’s UK residential strategy, the firm said, targeting high-quality assets with mid-market rents, providing robust fundamentals and scope for income optimisation.
L1 said the deal was “completed at a meaningful discount to replacement cost and underpins attractive day-one income, with significant embedded reversion over time”.
L1 Capital has so far deployed around £300m in the UK PRS market. The firm was established in 2007 and is headquartered in Melbourne, Australia, with four lgobal offices.
David Lamm, chief executive of L1 Property, said: “Hadrian’s Tower is a great addition to our residential portfolio. It is a high-quality property providing strong levels of income in an exciting regional city. Newcastle has attractive fundamentals, enabling us to capture reversion on both an asset and market level. We’re delighted to have completed on this complex acquisition and look forward to actively managing it over the years ahead.”
James Wilson, partner at Allsop, said: “The sale of Hadrian’s Tower demonstrates the continued appeal of high-quality, income-generating residential assets in strong regional centres.
“With its prime location, diversified income profile and long-term potential, the building attracted significant interest. While the transaction involved a number of complexities, we’re pleased to have supported FRP Advisory in navigating the process through to the successful completion of this deal.”
Squire Patton Boggs provided legal advice for the vendor with L1 Capital advised by Mishcon de Reya.
