Tuesday, 12 May 2015
M&G Real Estate makes €232 mln Office Park acquisition (UK)
M&G Real Estate has acquired Bedfont Lakes Office Park from Aberdeen Asset Management for €232 mln, representing a net initial yield of 5.44%. The transaction was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley and deputy manager, Justin Upton of M&G Real Estate.
The 34,807 m² office scheme is located less than one mile from Heathrow Airport and 15 miles west of central London.
This deal follows a significant volume of investment made by the leading global fund manager in the Thames Valley offices market, including Reading Bridge House for £35 mln (approx. €49 mln) and One Reading Central for £94.5 mln (approx. €131.4 mln).
The region and sector are a core focus for institutional investment in the UK. M&G Real Estate forecasts the south east office market as a whole to experience strengthened rental growth, given the growing tenant demand and shortage of Grade ‘A’ office parks. This is further supported by Crossrail’s boost to the region’s profile.
Current tenants at Bedfont Lakes Office Park include a range of both national and international companies such as BP International, Birds Eye Iglo, Targus Europe and Stratus Technologies Systems Ltd.
Source: RedWood Consulting