Manchester-based property firm, Elstar, has procured the substantial sports complex, Pride Leisure in Derby, for a sum of £8.4 million from Clearbell Property Partners II LP (Clearbell), a fund orchestrated by Clearbell Capital LLP. This off-market transaction signifies the last asset sale from the mixed-use Amber portfolio, culminating in an impressive total realisation of £174 million from 23 separate transactions.

Pride Leisure, a prominent sports complex, hosts an array of facilities and outlets including Everlast Gym, Oxygen Freejumping, We Are Padel, Subway, and Frankie & Benny’s. The acquisition thus not only expands Elstar’s property portfolio but also underlines the strategic asset reallocation by Clearbell.

The Amber portfolio, initially acquired from abrdn in August 2015, encompassed a sprawling 2 million square feet across 29 assets dispersed through England and Scotland, diversely invested in logistics, retail, and office sectors. Prior to this divestiture, Clearbell invested roughly £10 million in capital expenditure to adeptly reposition these assets, aligning with their overarching asset management objectives.

The meticulous asset management strategy deployed by Clearbell involved over 60 leasing transactions, repositioning assets to facilitate the construction of over 600 homes, and implementing energy efficiency enhancements across the entire portfolio.

Rob West, Managing Partner at Clearbell, reflected on this milestone, stating, “The final sale from our Amber Portfolio, culminating in a £174 million realisation, is a significant milestone that underscores the adeptness of our investment team, especially amidst the challenging market scenarios.” He further elaborated on the journey since the portfolio’s acquisition in a buoyant market back in 2015, navigating through the hurdles posed by Brexit, COVID-19, and fluctuating interest rates. “Our team exhibited remarkable resilience and strategic acumen in enhancing the portfolio’s value, thereby securing a double-digit return for our investors,” West added.

Advisory support for this transaction was extended to Clearbell by KLM, ensuring a smooth transition of ownership and concluding the chapter of Amber portfolio’s divestiture. This transaction not only reflects the dynamic UK property market but also the strategic shifts firms are making to adapt to evolving market demands.