Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of the Velocity office development in Weybridge for €76.7 mln (£56.1 mln), reflecting a net initial yield of 5.7%. The asset was acquired on behalf of Orchard Street UK Prime Property LP from Rockspring Property Investment Managers LLP (‘Rockspring’) UK Value fund.
Completed in 2013 by Rockspring and Exton Estates, Velocity comprises 9,884 m² (106,400 ft²) of Grade A office space split across two independent buildings – Velocity One and Velocity Two, totalling 5,424 m² (58,393 ft²) and 4,459 m² (48,007 ft²) respectively – spread over five floors. Benefitting from floor to ceiling windows throughout, Velocity has been finished to the highest specifications, achieving an ‘excellent’ rating by the BREEAM environmental assessment method for its sustainable design. Tenants can enjoy the use of a range of amenities, such as generous bike storage and car parking provisions, and top floor roof terraces.
Orchard Street acquired the property 76% let to three tenants, LG Electronics, Cargill PLC and Tomy UK Co Ltd, providing an attractive weighted average lease length to the earlier of break date or lease expiry of just under 12 years. This leaves just 24% (2,322m²) (25,000 ft²) remaining and available for immediate occupancy.
Velocity is located in Weybridge, one of the South East’s most sought after office locations, just 38 km southwest of central London, and benefits from excellent road and rail links. The asset itself is prominently situated within the historic boundaries of Brooklands, the world’s first motorsport race track, 6.4 km outside of the town centre and only 19 km from Heathrow airport.
Source: Orchad Street
