Tadhamon Capital completes US$ 28 million acquisition of school in the UK
Tadhamon Capital B.S.C.(c), has announced the successful acquisition of Coxlease School in the UK by a consortium of investors, in a transaction valued at 17.5m Pounds ($28m). Tadhamon Capital advised on the transaction and acted as an arranger of the financing.
The Coxlease Special Needs School is situated south of London in the New Forest in Lyndhurts, Hampshire. It is a specialist residential school for boys aged 9 to 18 with severe behavioural, emotional, social and learning difficulties and is run by the renowned Priory Group.
Established in 1980, the Priory Group is Europe’s leading independent provider of special needs health care, secure and step down services, specialist education, complex care and neuro-rehabilitation services, fostering and care homes, operating more than 50 facilities across Britain.
The school was acquired at a net initial yield (NIY) of 7.8% and will generate an attractive average cash yield of 9% p.a. to its investors, with a 30 year lease guaranteed by the Priory Group.
Commenting on the deal, Mr. Waleed Abdulla Rashdan, CEO of Tadhamon Capital, said "the Coxlease acquisition marks the first of a number of UK deals which we intend to close over the next 2 to 3 years. These transactions should diversify the portfolios of our shareholders and investors, providing them with exposure to the social infrastructure sector. This sector has held up well compared with other sectors during the downturn seen by the market during the last couple of years, both within the UK and internationally".
He also expressed that with the recent surge in demand for UK properties on the back of the drop in property values; there was a challenge in sourcing the appropriate high quality assets that could generate the desired returns for investors. "With so much focus being directed at the sector from both within the UK and abroad, the challenge continues to be selectively targeting and identifying the appropriate quality assets within our social infrastructure diversification strategy; however, through forging strategic alliances, we are poised to deliver our investors attractive returns from a mature market such as the UK