LaSalle Investment Management has acquired the freehold of the Langstone Technology Park, Havant for £54.25 million, equating to an initial yield of 7%, from Langstone Property Holdings BV. Cushman and Wakefield Healey and Baker and local agent Hughes Ellard acted for the vendor, and Strutt and Parker advised LaSalle.
The former IBM facility comprises a freehold multi-let office and R&D park totally 640,695 sq ft and is set in 40 acres of land with 125,000 sq ft of additional development potential. Fasset developed and manage the property and will maintain a lease for 15 years from July 2005 subject to a landlord only rolling break after five years. The rent payable to the free holder is set at 95% of net rental income received by Fasset from sub tenants. The property is sub let to 17 tenants, many of whom are well known multi-nationals including AT&T, Lockheed Martin and Xyratex.
Chris Allington, Managing Director of Fasset said We are delighted that our active management approach has returned a 150% valuation increase over the last five years. We are looking forward to working in partnership with LaSalle at Langstone Technology Park and on other projects. This sale clearly demonstrates the value of the Fasset business model to science park investors.
This is LaSalles third acquisition of a science park increasing their exposure to the sector to circa 100 million. All parks are exposed to different sectors, one being to bio-sciences industries, another to petro-chemical companies and Langstone Technology Park is mainly occupied by technology and telecommunications companies.
Andrew Bull, Fund Manager at LaSalle said We are very excited about expanding our interest in science parks by the acquisition of Langstone Technology Park. We are especially appreciative of all the work Fasset has carried out to date and look forward to our mutually beneficial futures. I have no doubt that what we offer to tenants in these exciting and innovative areas is both unique and of great value to current and future occupiers.