Market Tech snaps up three more Camden Market properties

Camden Market owner Market Tech has announced three property deals in the north London borough with large frontages along the Regents Canal.

Market Tech, which floated in December, said it had agreed a £125m unsecured acquisition facility with its major shareholder to buy the Associated Press's Interchange Building on Oval Road and Camden Wharf, together with a deal to secure the entire freehold of Camden Lock Market.

The Interchange Building and Camden Wharf are both fully let and, through their extensive frontage on the Regents Canal, are "physically linked to existing assets and will strategically strengthen Market Tech's real estate position within Camden town centre by controlling mix and yields".

The six-storey Interchange Building, an ex-industrial conversion office building, is let in full to Associated Press on a lease with a long term unexpired, while Camden Wharf is a modern, multi-let office building with retail and leisure units at street level immediately across the Regent’s Canal from the Interchange and the existing Camden Lock Market asset.

The total consideration is £95m plus £3.8m of stamp duty which will be met out of the loan facility from Citwax Investments.

The new loan is made available on broadly similar terms to the group’s existing facility with Citwax, and on an interest rate of 4%.

Broker Shore Capital said: "This is a very good deal, in our view, for Market Tech at a number of levels", including more complete ownership of adjoining assets in the area, a higher proportion of term leases within the total rent roll and increased water-side access on London’s Regent’s Canal.

Analyst Robin Hardy also saw scope for rental increases and said the freehold purchase at CLM should make expansion and development plans easier and flexible.

He said: "Overall, an excellent deal strategically and gives the group a large and firmer footprint in the Camden Markets area and while we reflect limited initial NAV or P&L impact, we are confident that there will be a material boost to both in the relatively near term.

"There is also significant potential marriage value with existing assets which could help to increase capital values at The Stables Market, CLM and the yielding assets at Jamestown Road."