British Land has bought office and leisure scheme Grenfell Island in Maidenhead, Berkshire, for £74m – a 7.5% net initial yield – from a private vendor.
The 198,000 sq ft scheme comprises 113,000 sq ft of office space let to Hutchison 3G on an unexpired lease term of 9.5 years. There is an additional 85,000 sq ft leisure complex anchored by a 10-screen Odeon cinema and health club. The weighted average lease length for the entire property is 10.7 years.
Tim Roberts, head of offices at British Land, said: “Grenfell Island is a modern, well-let property in a town which is expected to be a major beneficiary of the investment in Crossrail.”
“The acquisition provides British Land with an attractive income return in an improving occupier market and fits well within our strategic priority of creating sustainable and growing property rental streams. It also has significant capital appreciation potential given both the future benefits of Cross Rail and as the markets in the South East continue to improve.”
Knight Frank represented British Land; Lambert Smith Hampton acted for the private vendor.
annabel.dixon@estatesgazette.com
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