Landmark Reading office block back on the market at 50% off

Palm Capital has brought Abbey Gardens, a 154,805 sq ft office block in Reading, back to market at a reduced price of £25m. The investor had previously appointed DTRE to market the asset in 2022 for offers over £53m. The asking price has now been lowered by 52%. The new asking price reflects a 10.83% NIY at £160 per sq ft. Abbey Gardens is being marketed with the potential for redevelopment for alternative uses. Palm Capital bought the asset from Hermes Investment Management in 2017 for £40m. James Cook, head of offices at DTRE, said: “An office is never just an office. Times have changed and it is now as important as ever to spot the best use going forward for these sorts of assets. “With a fast-growing and ageing population, we can reasonably expect the demand for housing, senior living and healthcare to grow exponentially. When you look at Abbey Gardens through that lens, then it becomes an even more attractive asset.” Overview of the Reading office investment market >>