LGIM completes sale of Bracknell office block to council

Legal & General Investment Management Real Assets has confirmed it has sold Honeywell House in Bracknell town centre to Runnymede Borough Council for £32.9m. The price paid for the recently refurbished building represents a net initial yield of 5.32%. Honeywell House’s 72,604 sq ft of office space is let to Honeywell Control Systems on an 11.5-year lease. The acquisition of the property forms part of the council’s strategy to buy high-quality assets to secure income in order to fund a regeneration programme. Matt Jarvis, senior fund manager at LGIM Real Assets, said: “Having acquired the asset for £23.2m in 2015, the sale of Honeywell House for £32.9m marks the conclusion of a highly successful asset management programme, having re-geared the lease with Honeywell last year. “This sale demonstrates that despite a more challenging market, strong assets continue to generate interest.”    Colliers acted for LGIM;  TT&G advised Runnymede. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette