A pension fund client of RREEF has sold an office scheme in Windsor to Royal & Sun Alliance for £31.8m. The sale reflects a net initial yield of 5.94%.
The development comprises 6,309 sq m (67,910 sq ft) in two office buildings completed in 1999. The properties are let to FM Insurance Company and The Galileo Company on 25-year leases running from July 1999 with tenants’ option to break in the 20th year.
The two properties generate just under £2m pa, which reflects a rent of about £323 per sq m (£30 per sq ft) and £312 per sq m (£29 per sq ft).
Strutt & Parker advised RREEF while Knight Frank represented Royal & Sun Alliance.
EGi News 21/11/00
