Global property group Goodman has completed the sale of an 81,470 ft² (approx. 7,568 m²) headquarters building at Oxford Business Park to the Charles Street Buildings Group. The grade-A property was developed as a pre-let for GB Gas Holdings Limited, a Centrica plc group company.
GB Gas Holdings Limited hold a 17-year lease which commenced in October 2012 with a tenant’s option to break in 2027. CSB has purchased the building, designed by Frank Shaw Architects for £29.1 million, reflecting a net initial yield of 5.95%.
Jim Johnston, Managing Director, Goodman UK Business and Science Parks said: "The sale of Centrica’s Oxford headquarters comes in response to significant investor interest in the building and a lack of quality assets available in the current market. This dynamic ensured the property attracted a number of strong bids and in turn has enabled us to achieve positive pricing for our investors.
“Oxford Business Park is known for attracting prominent occupiers due to its proximity to Oxford City Centre, excellent transport links and the high quality working environment.”
Leicester based CSB purchased the property based on its strong covenant, design, and green credentials, as it has an EPC “A” rating and a BREEAM rating of excellent. It therefore represents a welcome addition to CSB’s portfolio and stands alongside CSB’s acquisitions at Trinity House, Nottingham which is let to E.On UK plc and the Environment Agency headquarters at Horizon House, Bristol.
Strutt and Parker advised Goodman on the sale. Jones Lang LaSalle advised the purchaser.