McKay Securities has made its first acquisition following its £87m share placing last month.
The REIT, which specialises in South East and London office and industrial property, has bought Leatherhead office Ashcombe House , from a private investor for £4.4m.
It said the deal for the freehold represented an initial yield of 7.4%.
The 17,300 sq ft office is fully let to four tenants, with an annual rent of £340,000 or £19.63 per sq ft. The weighted average unexpired lease term is 8.8 years or 3.8 years including breaks.
McKay managing director Simon Perkins said: “This is an attractive office building in one of the main commercial centres of the southern M25 office market.
“The property has been let during the economic downturn at low levels. We are confident that the building provides scope for rental growth with active management in an improving occupier market.
“Following our successful capital raise last month of £87m, we are planning on making a number of acquisitions to add to our existing portfolio, which currently totals £236m.
“This is our first purchase since the capital raise and we continue to target further properties that offer the potential to expand rental income and capital value.”
Colliers International acted for McKay; BNP Paribas represented the vendor.
bridget.oconnell@estatesgazette.com
