Orchard Street Investment Management has bought 3 Arlington Square in Bracknell, Berkshire, for £22.7m.
The asset was acquired from TPG-backed Arlington, with the purchase price representing a net initial yield of 6.25%.
The acquisition was made on behalf of St James’s Place Property Unit Trust.
The multilet property provides 67,862 sq ft of office space over ground and four upper floors, with 298 on-site car parking spaces.
The building is 92% let to six tenants including Legal & General Homes, Ivanti and Quest Software, providing a total rental income of £1,510,870 per annum, reflecting £22.26 per sq ft overall.
The asset has a WAULT of 7.2 years to expiries and 3.4 years to breaks.
Barney Rowe, partner at Orchard Street, said: “3 Arlington Square is a prime asset which offers high-quality office space in a strong town centre location, with the rental tone representing a compelling discount to neighbouring Thames Valley markets including Reading, Staines and Maidenhead.
“With the major regeneration of Bracknell’s town centre and strong population growth forecast, we consider it an optimum time to invest in this improving market.”
James Raven, managing director of Arlington, added: “This sale completes the initial phase of repositioning our portfolio following our acquisition by TPG and we now turn our focus to reinvesting in our core portfolio to create a series of amenity-rich, customer-focused business locations, and in developing out our landbank.”
Orchard Street was advised by Cushman & Wakefield and Arlington was advised by BNP Paribas Real Estate.
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