London & Stamford Property Plc (LSE: LSP.L) today announces that it has completed on the acquisition of an office building located on Leatherhead Office Park in the South East for £61.15 million (approx. 76 million) (excl. costs), reflecting a net initial yield of 6.85%. The vendor is Scottish Widows Investment Partnership and Orchard Street Investment Management.
The high-quality property, called Unilever House, comprises 179,457 ft² (approx. 16,700 m²) and is let in its entirety to Unilever UK Limited at a rent of £4.43 million per annum. The unexpired lease term is for a further 11 years.
Unilever House, purpose built for Unilever in 2008 and also the company's UK & Ireland headquarters, is within close proximity to the M25 motorway. The purchase also includes 520 car parking spaces and an existing planning consent to extend the building.
It is anticipated that leverage will be applied to the asset.
Raymond Mould, Chairman of London & Stamford, said: "We are pleased to have acquired Unilever House. It is a high quality asset in an attractive and established location adjacent to the M25 and offers an excellent cash yield combined with a secure tenant.
"The South East office market has witnessed a number of major lettings recently and is demonstrating good levels of demand from occupiers looking to relocate to the best available space. We believe that there will be further opportunities in the South East office sector."
Source: London & Stamford Property Plc