Threadneedle has bought the 70-acre Croxley Green scheme in Hertfordshire for £85m, in one of the rare unbroken business park sales since the crash.
The Watford, Hatters Lane, purchase, comprises 450,000 sq ft of offices across nine buildings, and 150,000 sq ft of light industrial space.
The price paid to Greenhills Asset Management for the site reflects an 8% yield. The 1980s park has undergone gradual refurbishments since 2007 when Greenhills bought it from Standard Life.
Croxley Green generates a rental income of circa £7m pa, but there is scope for high rental growth. Recent office lettings have seen companies sign at £23 per sq ft, and there is space for a 70,000 sq ft prelet that would secure £25 per sq ft
Charles Dady, head of UK business space at Cushman & Wakefield, said: “This new significant ownership [of Croxley Green], allows the owner to have control of a whole site and its potential growth. The wholemeal approach, rather than piecemeal one, is a strong way to improve rental growth and attract occupiers.”
He added that investors that have the capital have been trying to buy office-led business parks based on the success of developments such as Chiswick Park which Blackstone bought in 2011. There have been just a handful of unbroken large sales since 2008.
According to C&W, investments in the South East office market in the year to 30 September reached £1.1bn – up from £687m in the same period last year.
Tudor Toone acted for Greenhills; Smith Gore advised Threadneedle.
Threadneedle has bought the 70-acre Croxley Green scheme in Hertfordshire for £85m, in one of the rare unbroken business park sales since the crash. The Watford, Hatters Lane, purchase, comprises 450,000 sq ft of offices across nine buildings, and 150,000 sq ft of light industrial space. The price paid to Greenhills Asset Management for the site reflects an 8% yield. The 1980s park has undergone gradual refurbishments since 2007 when Greenhills bought it from Standard Life. Croxley Green generates a rental income of circa £7m pa, but there is scope for high rental growth. Recent office lettings have seen companies sign at £23 per sq ft, and there is space for a 70,000 sq ft prelet that would secure £25 per sq ft Charles Dady, head of UK business space at Cushman & Wakefield, said: “This new significant ownership [of Croxley Green], allows the owner to have control of a whole site and its potential growth. The wholemeal approach, rather than piecemeal one, is a strong way to improve rental growth and attract occupiers.” He added that investors that have the capital have been trying to buy office-led business parks based on the success of developments such as Chiswick Park which Blackstone bought in 2011. There have been just a handful of unbroken large sales since 2008. According to C&W, investments in the South East office market in the year to 30 September reached £1.1bn – up from £687m in the same period last year. Tudor Toone acted for Greenhills; Smith Gore advised Threadneedle. Joanna.bourke@estatesgazette.com
