Kennedy Wilson and its equity partner have closed the acquisition of The Capitol Building, a Grade A, 173,000ft² institutional-quality office campus for €55.4m ($66.2m), reflecting a cap rate of 7.7%. The partnership invested €24.3m ($29m) of equity and Kennedy Wilson’s ownership interest is 51%.
The Capitol Building, in Bracknell, is part of the active Thames Valley submarket. It is 97% occupied by nine tenants across the tech and business service sectors. The four-story building is set within a professionally landscaped environment and offers a range of tenant amenities to drive demand, as businesses look to improve the wellness and access to green space for staff. Amenities include meeting rooms, break out areas, a canteen, bike storage, shower facilities and landscaped grounds with picnic tables.
“This attractive acquisition just outside Greater London is the second acquisition with our joint venture partner of a prime suburban office campus, offering a high-income yield from a quality, well-let asset in a local submarket that we know very well,” said Mike Pegler, Head of UK for Kennedy Wilson. “The Thames Valley thrives on the tech and life sciences sectors, which are very well represented at The Capitol Building, and are contributing to the increasing demand we are seeing for low-rise and suburban office space.”
