Woking Borough Council has acquired Aviva Investors’ Victoria Gate building in Woking for around £40m.
The deal reflected a yield of sub-5%.
The council confirmed it has acquired the 66,415 sq ft building, which is currently fully let to McLaren Group.
Cushman & Wakefield advised Woking Council on the deal.
The five-storey property is close to Woking Station in the town centre.
Woking Council has been acquisitive in the real estate sector over the past few years. Last year it bought the Dukes Court office complex in Woking for £72.35m. The building was owned by Aerium and NorthStar Realty Europe.
Since 2016 Woking Borough Council has invested £120.6m across seven commercial real estate assets, the largest being Dukes Court. The purchase of McLaren’s office brings the total up to £160m, according to Radius Data Exchange.
EG’s retail analyst James Child commented: “Woking Borough Council’s activity means it is one of the top 10 authorities in terms of spend and assets acquired since 2013. The spend has been concentrated in the office sector, which is unsurprising given Woking’s prominence as a business park destination in the Thames Valley.”
Previously, on the letting deal agreed in October, Aviva Investors was represented by BNP Paribas Real Estate and McLaren was represented by Lambert Smith Hampton.
Aviva did not respond to requests for comment.
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