Dev Secs picks up former Rock Group sites

PROPERTY giant Development Securities has bought a portfolio of 14 properties that includes the Walkabout Bar on Quay Street and a mixed use residential and shopping centre development in Hale Barns for £23.3m.

The company acquired the portfolio from PricewaterhouseCoopers, who were acting as administrators of property entrepreneur Paul Kemsley’s former business, Rock Group, on behalf of Lloyds Banking Group.

Development Securities said that the properties bought were a mix of both commercial and residential investment properties and development opportunities. Half of the assets bought were income producing, and the blended net initial yield on the portfolio is 5.86%.

The company said that it would pay for the properties from its existing cash resources following a recent capital-raising exercise, coupled with new three-year debt provided by Lloyds Banking Group.