Orchard Street Investment Management, acting on behalf of St. James’s Place Property Unit Trust, has completed the acquisition of 3 Arlington Square in Bracknell, Berkshire for €25.8m (£22.65m). The asset was acquired from Arlington, with the purchase price representing a net initial yield of 6.25%.
The multi-let Grade A property provides 67,862 ft² of highly-specified office accommodation, arranged over ground and four upper floors, with 298 on-site car parking spaces equating to a ratio of 1:228 ft². Constructed in 2001, the building has recently benefited from a major capex programme including upgrading the triple height reception area and mechanical equipment, and a comprehensive refurbishment of the majority of the office space. The building is 92% let to six high-quality tenants including Legal & General Homes, Ivanti and Quest Software, providing a total rental income of €1.7m (£1.5m) per annum, reflecting a low €25.4m (£22.26) per ft² overall. The asset provides a WAULT of 7.2 years to expires and 3.4 years to breaks.
The property is situated in Arlington Square, Bracknell’s prime office location adjacent to the town centre, in the heart of the Thames Valley, within 5 miles of the M4 motorway and 6 miles of the M3 motorway. The town benefits from access to Heathrow Airport within 27 minutes and Central London by train within 55 minutes. Bracknell’s town centre has recently undergone a major €273.4m (£240m) regeneration project.
Barney Rowe, Partner at Orchard Street, commented: “3 Arlington Square is a prime asset which offers high-quality office space in a strong town centre location, with the rental tone representing a compelling discount to neighbouring Thames Valley markets including Reading, Staines and Maidenhead. With the major regeneration of Bracknell’s town centre and strong population growth forecast, we consider it an optimum time to invest in this improving market.”
James Raven, Managing Director of Arlington, commented: “This sale at Arlington Square completes the initial phase of re-positioning our portfolio, following our acquisition by TPG, and we now turn our focus to reinvesting in our core Portfolio to create a series of amenity-rich, customer-focused business locations, and in developing out our land bank.”
Orchard Street was advised by Cushman & Wakefield on the transaction, whilst Arlington was advised by BNP Paribas Real Estate.
