Otium announces launch of second fund with its first leisure park acquisition

Otium Real Estate, the London-based property investment company, has announced the launch of its Otium Leisure Ventures II fund.

The company, which focuses exclusively on leisure property investment, owns leisure parks across the UK featuring tenants such as cinemas, gyms, restaurants as well as many other types of leisure operators.

The new fund has raised sufficient equity to acquire a further £200m of leisure assets. The same pool of international investors who backed fund I at its launch in November 2014 have backed the new vehicle.

The new vehicle will target leisure assets that can deliver value-add opportunities.

The fund has made its first acquisition with the purchase of the Coppins Bridge scheme in the Isle of Wight from Aviva Investors. The 73,605 sq ft property comprises the Isle of Wight’s only multiplex cinema and a range of tenants including Cineworld, Pizza Hut, KFC, Office Outlet and Fever Bars.

The property is located in Newport in the centre of the island close to supermarkets and out-of-town retail. In addition, the property benefits from two car parks and covers a 4.66 acre site.

The purchase was made at a price of £12.95m, reflecting a yield of 7% of a rental income of £970,169 per annum.

Ashley Blake of Otium said: “Following on from the success of our first fund, we were keen to invest further in this exciting and dynamic sector and fund II enables us to add to our portfolio. We are keen to acquire further leisure assets during 2018.”

Will Andrews, Mark Smith and Jonny Perkins, who joined KLM from JLL in late 2017 acted for the vendor, Aviva Investors.

The sale was their first transaction within KLM.

Will Andrews added: “We are delighted to have acted for Aviva Investors on this transaction and delivered a successful disposal. It’s doubly exciting for us as a team as our first completed transaction as a team at KLM Retail.”