South Cambridgeshire District Council has bought the 91-year leasehold interest in 140 Cambridge Science Park from Mayfair Capital Property Unit Trust (MCPUT) for €15m (£13m). The two-storey Grade A office building is let to DisplayLink on a 15-year lease.
Laura Sweet, Mayfair Capital Investment Management - advisers to MCPUT - commented: “This asset was acquired by Mayfair Capital Property Unit Trust in 2011 as a result of our belief in the Cambridge market. The business plan of obtaining vacant possession and undertaking a comprehensive refurbishment was successfully completed in 2015 with the entire building being leased to DisplayLink on practical completion of the works at a leading rent for the park. Mayfair Capital continues to look for further opportunities to invest in the Cambridge market”.
Graeme Rutter, Head of Schroder Real Estate Capital Partners - which acts as the manager of MCPUT - said: “We are delighted to have completed the original business plan on the asset and to have crystallised an attractive return for our clients on disposal. We have a number of other ownerships in the Cambridge office market and are very confident regarding the depth of occupier demand and its rental growth prospects.”
Charlie Lake, Capital Markets Director at Lambert Smith Hampton who advised on the sale, comments: “We are delighted to have completed this sale on behalf Mayfair Capital Property Unit Trust. The result is a testament to the demand for a rare opportunity to invest in Cambridge Science Park, where the occupational market dynamics remain extremely compelling.”
Carter Jonas Partner, Will Rooke, who advised the purchaser said: “Following the recent adoption of the Council’s commercial investment strategy, we were pleased to be able to identify for them a relatively off-market opportunity to acquire a safe, income-producing asset, the characteristics of which fulfil their investment requirements, on an established park within their administrative area”.
South Cambridgeshire District Council’s Lead Cabinet Member for Finance, Cllr John Williams, said: “We’re extremely pleased to have moved quickly to agree and complete this purchase. This investment will give us a good return which we will re-invest into frontline services for many years. An opportunity to buy an office in this world-renowned South Cambridgeshire location is rare and our recently-agreed investment strategy means we were in an excellent position to be able to capitalise on it.”