London & Stamford Property Plc (LSE: LSP.L) announces that it has exchanged contracts to acquire an office building; Marlow International, Parkway, Marlow, from Avestus for £50.15 million (approx. 62.4 million) (excl. costs), reflecting a net initial yield of 8.9%.
The property is a grade-A office building comprising 231,016 ft² (approx. 21,461 m²) and was comprehensively refurbished in 2000. It is located just off the junction of the A404 in Buckinghamshire and is three miles from the M40 and eight miles to the M4.
The property is let in its entirety to Allergan Ltd, Veolia Water Solutions Ltd and Dun & Bradstreet Ltd and for a weighted average unexpired term of seven years. The property includes a fully fitted and equipped 500 cover restaurant and 854 underground and ground level car parking spaces.
It is anticipated that leverage will be applied to this asset in a cross collateralised arrangement with Unilever House, Leatherhead. The cash yield on the combined portfolio will then be 11.2%.
Raymond Mould Chairman of London & Stamford, said: "Following the announcement of our acquisition of Unilever House, Leatherhead, last week, we are delighted to announce our second office investment in the South East. Marlow International is a high quality property in an attractive location offering excellent cash yields combined with a high quality secure tenant mix and attractive asset management opportunities.
"These deals when combined with our acquisition of Moore House on 22 June 2012, complete c.£260 million of the potential investments I advised on in my statement at our year end results."
Source: London & Stamford