M&G Real Estate has bought Meridien House in Watford from IVG for £19m – a 5.9% yield.
Situated on Clarendon Road in close proximity to Watford’s mainline station, Meridien House comprises 60,000 sq ft of Grade-A office accommodation.
The building is multi-let to eight tenants at a rent of £1.2m pa.
M&G’s Dermot Kiernan said: “The availability of South East office investments such as Meridien House remain limited given the growing strength of occupational demand and the relative lack of attractive space.
“South East offices were the best-performing IPD segment in Q1 of this year, benefitting from a rapid compression in yields and strong rental growth – an attractive proposition for institutional investors looking to benefit from the ongoing recovery.
“The purchase of this asset will complement the fund’s other recent South East purchases that also have strong growth prospects.”
M&G Real Estate was advised by Knight Frank; Bray Fox Smith represented IVG.
nick.whitten@estatesgazette.com
