MOUNTGRANGE BUYS PRIME CAMBERLEY BUSINESS PARK FOR £23.5M FROM SCOTTISH WIDOWS
156,000 sq ft of high quality office space along M3 corridor Purchase price below estimated replacement cost Net Initial yield of 8.75%
Mountgrange Investment Management LLP (“Mountgrange”) has agreed to purchase Meadows Business Park (“Meadows”),and is comprised of 4 Grade A office buildings in a strong location in Camberley, Surrey. With acquisition at a capital value of £150 per sq ft, and an estimated replacement cost of £160 per sq ft, the acquisition represents a highly attractive investment by Mountgrange.
Occupancy levels are currently at 80% and, with no planned developments in the vicinity, any future demand for office space should be captured by the Meadows. The site has been acquired for a net initial yield of 8.75%.
The business park, which is being acquired from Scottish Widows, has a strong tenant line up and counts City Link Ltd, Kendle International Ltd and the British Cement Association as three of its seven occupiers.
Rob West, a Partner at Mountgrange, commented: “Meadows Business Park is clearly a very attractive investment proposition, is a best in class property and with a quality which is rarely available. The purchase price is below the estimated replacement cost, and with little equivalent property in the locality, will prove attractive to new tenants. Mountgrange’s proactive asset management skills will add value to what is already a great site with impressive credentials.”
Completed in 2002, Meadows is set in landscaped grounds on the outskirts of Camberley. It is close to Junction 4 of the M3 motorway and adjacent to Blackwater rail station. The site comprises four office blocks totalling 140,000 sq ft as well as 16,000 sq ft of storage space.
Completion of the purchase is scheduled for 15 April 2010. GVA Grimley, Grant Thornton and Nabarro are advising Mountgrange on the deal.
Nelson Bakewell acted for Scottish Widows