Legal & General is to fund a 7,300 sq m (78,670 sq ft) office scheme in Woking, Surrey, which has been prelet in its entirety to computer company Cap Gemini. The final purchase price is based on a 6.5% initial yield, which reflects a capital value of around £24m.
Frogmore is developing the 7,300 sq m (78,670 sq ft) building on a 1.2ha (3 acre) town centre site which it bought from the council. The scheme will have a minimum of 385 car parking spaces.
Cap Gemini has agreed a 20-year lease with five-year reviews at £226 per sq m (£21 per sq ft).
Stephen Mundy at Legal & General said: “This purchase is in accordance with our strategy to acquire quality office investments in the South East with good rental growth prospects. This development is viewed as a virtual office campus, with the benefit of a town centre office location and the car parking provision of a prime business park.”
Construction is due to start in the next few weeks with completion scheduled for January 2000.
EGi News 30/07/98
