McKay Securities has bought the freehold of Gainsborough House in Windsor, Berkshire, from receivers.
McKay agreed a deal to buy the 1980s brick building in central Windsor for £6.9m – an initial yield of 7.1%.
The 18,660 sq ft office block is sublet to serviced office operator Regus until December 2016 at a rent of £512,800 pa.
Since an £87m capital raising in February, McKay has committed £54m to the acquisition of five properties and portfolio refurbishments.
McKay managing director Simon Perkins said: “As a result of the constrained supply of good quality office buildings and the attraction of the town to occupiers, Windsor continues to be a resilient market with consistently low levels of vacant floor space.
“This attractive building is an excellent addition to our portfolio in a town that we have wanted representation in for some time.
“Lease expiry at the end of 2016 gives us the potential to renew with the existing occupier, or implement a refurbishment to benefit from improving rental values within the town and the South East generally.
“We continue to target and assess buildings with the scope to release income and capital gains from our development, refurbishment and management skills.”
Colliers International acted for McKay.
nick.whitten@estatesgazette.com
