AEW builds Berkshire footprint with Reading office buy

AEW has expanded its holdings around Reading station with the acquisition of the 66,000 sq ft Northgate House. The property, which is majority let to the government, has been bought from a private company on behalf of the AEW UK Core Plus Property Fund for £8m and creates a sizeable footprint for AEW around the station. The fund already owns the 7,500 sq ft Tangent House office block and a public house to the rear of Northgate House. AEW said it now had a “highly prominent site in a location lending itself to multiple end uses”. According to EG Radius data, the building was last purchased by Charles Street Buildings (Leicester) in March 2019 for £15.5m. Michael Shears, executive director at AEW, said: “The acquisition of Northgate House is in line with the fund’s investment strategy of acquiring assets in core locations which are underpinned by long-term, strong capital values with optionality in viable end use. Northgate House sits on a gateway site in Reading town centre in a market with limited new delivery of grade-A office space.” Tudor Real Estate advised AEW; ACRE Capital Real Estate and Hatch Real Estate acted for the vendor.