Vengrove has invested £20m across two assets.
In partnership with Chenevari it has bought the 137,000 sq ft Newbury business park in Berkshire from Moorfield Group for £11.1m, an initial yield of 10.5%. The site comprises five office buildings let to tenants including Canon, Huawei and Vodafone.
They also bought the 150,000 sq ft Unit B from Legal & General at Stakehill industrial estate in Greater Manchester for £8.6m, an initial yield of 9.8%. The unit is adjacent to the M62 and let to Aldi until March 2016. The site is in need of refurbishment and is a considerable asset management opportunity.
Jack Burgess, partner at Vengrove, said: “Both acquisitions provide our highly experienced asset management team with the opportunity to transform the properties within an 18-month window.
“Acquiring Newbury Business Park at well below replacement cost enables us to provide grade-A accommodation at a substantial rental discount to neighbouring locations. With no grade-A stock available in the town, no development pipeline and the lowest vacancy rate within the M4 corridor, the repositioned park will be well placed to benefit from latent occupational demand.”
Vengrove was represented by Bray Fox Smith on Newbury and DTRE & WHR on Stakehill. Savills acted on behalf of Moorfield; Knight Frank acted for Legal & General.
