Rockspring Property Investment Managers has bought Mole business park in Leatherhead, Surrey, for £38.1m – a 7.3% yield – from Hermes Real Estate Investment Management.
The purchase follows the successful raising of £70m from new investors in Rockspring’s Hanover Fund.
Mole business park comprises 245,000 sq ft commercial space arranged over 19 sheds and three office buildings.
Rockspring said the acquisition was part of its strategy to increase its exposure to the South East office and industrial sectors and was an opportunity to acquire a sizeable, well-located park with asset management potential at an attractive yield.
Fund director Neal Shegog said: “This acquisition offers strong rental growth potential given the low supply and strengthening demand in the southwest quadrant of the M25 for good-quality office and industrial accommodation. We also have the opportunity to retain tenants beyond their existing lease terms, improving the longevity of income and maintaining an attractive blended yield profile. This purchase further enhances the quality of the real estate the fund holds.”
The Hanover Fund was formed in 1967 as an open-ended, balanced fund focused on UK assets. It seeks to offer investors long-term, above-average performance by investing in core and core-plus assets, which offer above-average income returns that can be enhanced through active management, or have above-average growth potential. As at 30 June 2011, it had a net asset value of £469.3m.
samantha.mcclary@estatesgazette.com
