Claymore Group, acting on behalf of Rhine Property Investments, has acquired a 53,000 ft² (approx. 4,923 m²) office investment from Legal & General Property for £13.5 mln (approx. 17 mln) in an off-market transaction.
The property is located on Goodman's 130-acre Solent Business Park near Southampton.
The property, located on Goodman's 130-acre Solent Business Park near Southampton, is let to Zurich Insurance for a further 10 years at an annual rental of £1.035 mln (approx. 1.303 mln), reflecting a net initial yield of 7.25%.
The asset was held within Legal & General's Property Unit Trust (PUT), which is the fastest growing fund in its sector and one of very few continuing to see strong inflow of capital from both retail and institutional investors.
Matt Jarvis, Fund Manager of the PUT at Legal & General Property, says: "We are happy with the result of this transaction, which demonstrates that demand remains strong for prime assets. Whilst the Property Unit Trust continues to see strong growth, we are undertaking disposals on a selective basis in order to refresh our portfolio and redistribute capital into new high yielding opportunities which are better aligned to the Fund's risk/return profile."
Rhine is a Gulf based propco for whom Claymore is looking to acquire further prime assets with a focus on the South East/M25 region.
Duncan O'Neill, Director at Claymore says, "This deal is Claymore's third recent success for overseas clients, following the acquisition of a 7,000 ft² multi-let office building in Mayfair for Qatari clients and a 30,000 ft² office investment in Leeds in a JV with a Hong Kong funding partner. Our client on this transaction, Rhine, is a Gulf based propco for whom we will be looking to acquire further prime assets, later this year, with a focus on the southeast/M25 region."
Knight Frank acted for Legal & General Property and Crossland Otter Hunt advised Claymore.
Source: Claymore Group