Rockspring Property Investment Managers announces that, on behalf of Rockspring Hanover Property Unit Trust ('RHPUT'), it has acquired Mole Business Park, Leatherhead for £38.135 million (approx. 44.3 million), from Hermes Real Estate Investment Management Limited (HREIML), reflecting a 7.3% pa net initial yield. The purchase follows the successful raise of £70 million from new investors.
Mole Business Park, situated in Leatherhead town center, comprises 245,000 ft² (approx. 22,760 m²) of commercial space, arranged over 19 industrial units and three office buildings.
The acquisition furthers RHPUT's strategy to increase its exposure to the south east office and industrial sectors and provided an opportunity to acquire a sizeable, well located park with asset management potential at an attractive yield.
On behalf of the Fund, Rockspring has recently raised £70 million from new global blue chip institutional investors, broadening the unit holder base further.
RHPUT is the longest established property fund in the UK, having been formed in 1967 as an open-ended, balanced fund focused on UK assets. It seeks to offer investors long term, above average performance by investing in core and core plus assets, which offer above average income returns that can be enhanced through active management, or have above average growth potential. As at June 30, 2011, the Fund had a net asset value of £469.3 million.
Neal Shegog, Fund Director of RHPUT, commented: "This acquisition offers strong rental growth potential given the low supply and strengthening demand in the south west quadrant of the M25 for good quality office and industrial accommodation.
"We also have the opportunity to retain tenants beyond their existing lease terms, improving the longevity of income and maintaining an attractive blended yield profile. This purchase further enhances the quality of the real estate the Fund holds.
"The Fund has now beaten its benchmark for the last four consecutive quarters, underlining the attraction of a UK focused product which targets outperformance driven by rigorous stock selection and income enhancement through a proactive approach to asset management."
Lambert Smith Hampton acted for Rockspring and Strutt & Parker represented the vendor.
Source: FTI Consulting