Trinity College Cambridge
As long-standing property investment managers to Trinity College, we knew it wanted investments with exceptional rates of long-term return. So when the prospect of buying the O2 Arena for £24 million, to show an index-linked return in excess of 6%, we jumped at the chance.
The return is based on the ticket sales from the world’s busiest concert venue – secured, with minimum payments, on long leases to AEG , the world’s largest entertainment group. And it is underwritten by the 32 acres of land at the northern tip of the Greenwich peninsula on which the O2 Arena sits.
The entertainment offer within the O2 Arena is likely to be enhanced shortly by a new development on the 150,000 sq ft first floor concrete raft, where the super casino was originally planned. This will generate another income stream to increase the College’s return, such that the investment will have delivered a real return since purchase of 7% – projected to continue for the next hundred years.
The O2 Arena has brought with it impressive benefits for the client – not all of them foreseen. It brings with it a stunning investment return that outpaces inflation. And in the year Trinity College acquired the Arena there was a surge in student applications of 40%.
The number of years
the O2 Arena has ranked
as the world’s busiest
(according to Pollstar).
The distance the 17,500 pages of legal documents stretch when laid end to end – enough to wrap around the O2 Arena five times.