Goldman Sachs has acquired Croxley Park in Watford from Columbia Threadneedle for around £400m.
The deal reflects a circa 2.5% yield. It also includes a 40-year lease to Watford Borough Council, which is renting the property for £9.2m a year.
The council first got approval to lease the 725,000 sq ft business park from Columbia Threadneedle in January. It has the opportunity to buy the freehold of the business park for a nominal £10 at the end of the 40-year period. The leasing deal completed in July.
Columbia Threadneedle is also to pay £92m upfront to Watford Borough Council for maintenance costs.
It originally put Croxley Park, which comprises 13 buildings over 75 acres, on the market last year for £224m.
The deal is set to significantly bolster South East office investment volumes for the third quarter. The £400m price tag is already close to the total investment recorded in Q2 (£523m), and well above that of Q1 (£142m), according to CBRE data.
TT&G Partners and CBRE advised Columbia Threadneedle. Lambert Smith Hampton Investment Management advised Watford Borough Council.
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