Rockspring announces that it has sold Kings and Conquest House in Kingston-Upon-Thames to an institutional client of Aberdeen Asset Management for £31.05 million (approx. €36.7 million), which reflects a net initial yield of 6.85%.
Kings and Conquest House is the largest of five buildings which made up the 252,000 ft² (approx. 23,400 m²) St Martin’s South East office portfolio acquired by Rockspring’s UK Value Fund in February 2011. Following the acquisition, Rockspring undertook a substantial refurbishment programme at the asset to provide 90,000 ft² (approx. 8,360 m²) of Grade-A offices, with ancillary retail space on the ground floor. All of the office space was pre-let to Saipem, a leading multinational oil company, as its UK headquarters, on a 15 year lease.
Rockspring’s UK Value Fund was launched in 2009 to take tactical advantage of the significant re-pricing in the UK property market. The closed-ended fund has built a portfolio of retail, office and student accommodation in diverse locations throughout the UK totaling in excess of £450 million (approx. €532 million).
Richard Bains, Rockspring UK Value Fund Manager said: “The sale of this asset is a great endorsement of our strategy to take on risk in strong, core South East office markets. Our ability to deliver Grade-A space into a market experiencing a lack of supply has been affirmed by both the letting to Saipem and onward sale to Aberdeen, delivering strong returns for the fund.”
Ben Buckley-Sharp, Aberdeen Asset Management, commented: “We are delighted with the purchase of this Grade-A headquarter office building. It gives us exposure to long and secure income at a sensible rental level in a key West London suburb with excellent growth prospects.”
Rockspring was advised by Montagu Evans and Aberdeen Asset Management was represented by Savills.