M&G Real Estate has paid Aberdeen Asset Management £167m ($232.6m) for a regional UK business park.
The fund manager said it has bought Bedfont Lakes Office Park at a net 5.44% initial yield for the M&G Property Portfolio vehicle.
The 374,661 sqft office scheme, near Heathrow airport, is let to BP International, Birds Eye Iglo, Targus Europe and Stratus Technologies Systems.
The deal follows the £35m purchase of nearby Reading Bridge House and One Reading Central, a 220,000 sqft office scheme, for £94.5m.
Fiona Rowley, who manages the fund, said demand for core southeast offices is strong in west London and the ‘western corridor’ that extends out beyond the city.
“Rents in these areas currently stand between £30 and £50 per sqft – and this is only set to grow with the introduction of Crossrail and quicker links into central London, providing our investors with long-term, income-driven growth,” she said.
M&G Real Estate said the south east office market is set to experience strengthened rental growth, given the growing tenant demand and shortage of grade-A office parks.