Private equity real estate firm Benson Elliot Capital Management has successfully leased up the entire CBXII building in Milton Keynes. On the strength of this letting success Benson Elliot has secured a new five-year, GBP12.4 million financing facility with Santander.
The letting milestone was achieved within one year of the property being acquired by Benson Elliot Real Estate Partners II L.P., in spite of the challenging market environment.
Benson Elliot secured a ten year lease for more than 7,000 sq ft to Global Radio Limited, the UK’s leading radio company and operator of well known brands including Capital FM, Heart, and Classic FM. Additional letting activity undertaken by Benson Elliot and asset manager XLB Property since acquisition includes all previously vacant retail units, and a new 23,000 sq ft lease to Regus UK.
CBXII is a modern, mixed-use city centre development comprising c. 150,000 sq ft (14,000 sq m) of office and retail space, split over three buildings on Midsummer Boulevard: Midsummer East, Midsummer West and Midsummer Court. In addition to Global Radio and Regus, office tenants include Argos and the Homes and Communities Agency. Benson Elliot acquired CBXII in March 2010.
Phil Irons (pictured), Partner and Head of UK Investment at Benson Elliot, says: “When we acquired CBXII, we saw that there was significant potential to drive value through a proactive asset management programme. We haven’t been slow to grasp the nettle. The impressive results we have achieved, and the support we have secured from Santander, are a testament to the efforts of the Benson Elliot and XLB teams, and a reflection of our determination to maximise value for our investors.”