Monday, 17 November 2014
RO Real Estate sells Hemel One office building to Threadneedle (UK)
RO Real Estate, the UK commercial property investment and development company, has completed the sale of it 96,000 ft² (approx. 8.9186 m²) office building in Hemel Hempstead, Hertfordshire, to Threadneedle Investments for £17.75 million (€22.2 million), reflecting a net initial yield of 7.75%.
Hemel One on Boundary Way is a grade A office building, comprising 96,000 ft² (8.9186 m²) of space over four floors. The building is fully let to a range of well-known companies, including Ericsson, Kcom and BP with an average weighted unexpired term of 5.4 years to expiries and 2.6 years to breaks.
Since acquiring the property in 2005 from 3Com, RO Real Estate has added significant value through a number of initiatives, including a comprehensive refurbishment.
Richard Bourne, head of RO Real Estate, said: “Hemel One has been a classic RO refurbishment and asset management play. We were able to refurbish the building, retain tenants and then lease the remainder of the space on traditional and innovative, semi-serviced office solutions.
“We are actively seeking similar value-add opportunities in the south east where our skill-set and experience will enable us to generate income and capital growth”.
Knight Frank acted for RO Real Estate, while Deloitte acted for Threadneedle.