LaSalle Investment Management has purchased Kingsmead Business Park in the Thames Valley.
LaSalle paid Clearbell and Patron Capital £40m – a net initial yield of 6.7% – in an off-market transaction.
The park comprises 142,673 sq ft of offices across five buildings built in 1992, the majority of which were recently refurbished.
It is multi-let to nine tenants with an average unexpired lease term of eight years and provides an annual income of £2.8m.
LaSalle head of national business space Paul Till said: “The acquisition of Kingsmead Business Park reflects our core-plus strategy of acquiring income-producing assets in strong markets. The South East is an obvious target region and we will increase our office exposure in this part of the UK. In particular, we will continue targeting assets that offer high quality space at competitive rents with good transport links.”
Clearbell partner Rob West said: “The sale of Kingsmead Business Park is another demonstration of the strength of the performance of our Mercury portfolio, a joint venture which has delivered value for its investors through appropriate timing and effective asset management.”
LaSalle was advised by Montagu Evans; Clearbell and Patron Capital were advised by CBRE.
