£40m deal for WG Mitchell portfolio on the cards

A private buyer backed by a JO Hambro fund has placed under offer a £40m portfolio owned by Northern Irish group WG Mitchell.

Ernst & Young, which was appointed administrator to 28 of WG Mitchell’s subsidiary companies earlier this year, is selling the portfolio. WG Mitchell is headed by well-known Northern Irish property figure Patrick Hegarty.

The portfolio being sold comprises 15 assets across the UK, and is thought to be under offer for more than £40m. It includes 160,000 of offices, 110,00 sq ft of which is in central Edinburgh, 400,000 sq ft of industrial space and 20,000 sq ft of retail, leisure and healthcare space.

It is thought that Royal Bank of Scotland is providing the debt for the deal, which is under offer at a yield of around 8.5%.

Savills is advising the administrator, Ernst & Young. King Sturge is advising the buyer. All parties declined to comment.