European fund manager Rockspring Property Investment Managers has sold Kings and Conquest House in Kingston-Upon-Thames, UK, to an institutional client of Aberdeen Asset Management for £31.05m (€36.7m), which reflects a net initial yield of 6.85%.
Kings and Conquest House is the largest of five buildings which made up the 2,548 m2 St Martin’s South East office portfolio acquired by Rockspring’s UK Value Fund in February 2011. Following the acquisition, Rockspring undertook a substantial refurbishment programme at the asset to provide 2,548 m2 of grade A offices, with ancillary retail space on the ground floor. All of the office space was prelet to Saipem, a leading multinational oil company, as its UK headquarters, on a 15-year lease.
Rockspring’s UK Value Fund was launched in 2009 to take tactical advantage of the significant re-pricing in the UK property market. The closed-ended fund has built a portfolio of retail, office and student accommodation in diverse locations throughout the UK totalling in excess of £450m.
Richard Bains, Rockspring UK Value Fund manager, said: “The sale of this asset is a great endorsement of our strategy to take on risk in strong, core South East office markets. Our ability to deliver Grade A space into a market experiencing a lack of supply has been affirmed by both the letting to Saipem and onward sale to Aberdeen, delivering strong returns for the fund.”
Rockspring was advised by Montagu Evans and Aberdeen Asset Management was represented by Savills.
