The Mountgrange Real Estate Opportunity Fund, which is managed by Mountgrange Investment Management LLP, has purchased IQ Cambridge Business Park from SEGRO, Europe's leading provider of flexible business space, for a total consideration of £10.15 million (approx. 11.5 million).
Located five miles north of Cambridge, the business park consists of circa 78,000 ft² (approx. 7,250 m²) of office buildings. Included in the sale is an area of some 25.35 acres of land which has planning consent for 330,000 ft² of office space and a 112 bedroom hotel. The purchase price represents a net initial yield of 7.2%.
Rob West, Partner at Mountgrange, commented: "This is a fully serviced and well landscaped site in a strong region with plenty of asset management potential. We aim to widen the range of business uses on the park to include mid tech and light industrial, making it a leading mixed use site for the region."
Kate Dean, SEGRO's Regional Director for Thames Valley, Offices said, "The sale of IQ Cambridge is part of our strategy of focusing on core clusters where we're able to add most value. Since 2000, we have developed a number of new buildings on the park and between 2006 and 2008 we took the opportunity to dispose of four properties on the site for an aggregate consideration of £52.1million. We now feel it is an appropriate time to sell."
XLB Property, Bray Fox Smith, Grant Thornton and Nabarro advised Mountgrange on the deal.
Bidwells and Eversheds acted for SEGRO.
Source: HeadLand Consultancy