30th Oct 2019 11:29
(Alliance News) - McKay Securities PLC said Wednesday it has acquired Rivergate, a multi-let office building fronting Newbury Business Park in Berkshire for GBP15.5 million, reflecting a net initial yield of 7.5%.
The property has 61,385 square feet of lettable space over three floors, and car parking totalling 323 spaces.
The property is fully let to six occupiers including Capita Business Services, a unit of FTSE 100 outsourcing firm Capita PLC, Cavendish Nuclear Ltd, a subsidiary of FTSE 250-listed infrastructure Babcock International PLC and law firm Coffin Mew.
The property has a weighted average unexpired lease term of 8.8 years.
"Rivergate is one of the best office buildings in Newbury and has proved its appeal to occupiers with recent lettings all at, or in excess of, ten years. The building stands in good condition with limited capex requirements and will provide shareholders with a high yield and long income," said Chief Executive Simon Perkins.
"Its low rental level relative to the wider market and the potential to add area and refurbish the ground floor provides plenty of scope for future growth, complementing other value enhancing opportunities across our wider portfolio," Perkins added.
Shares in the London & South East-focused real estate investment trust were down 1.7% at 226.0 pence in London on Wednesday.
By Dayo Laniyan; [email protected]
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