Invista Real Estate Investment Management has completed the purchases of office assets in the UK for approximately £38 mln (EUR 42 mln).
Invista Real Estate Investment Management has completed the purchases of office assets in the UK for approximately £38 mln (EUR 42 mln).
Invista has purchased Mott MacDonald House in Croydon from Rishon Properties, for a total consideration of £13.75 mln, reflecting a net initial yield of 9.5%. Following the acquisition, Invista has secured a lease re-gear for 15 years to existing tenant Mott Macdonald at a rent of £1,237,500 (£19.25 per sq ft). The regear has been immediately reflected in a 13.45% uplift in the valuation of the asset.
Invista has also acquired three buildings, comprising 126,563 sq ft on Westwood Business Park in Coventry, from Trillium Property for £20.2 mln, reflecting a net initial yield of 7.52%. The properties are let to Barclays on leases expiring in December 2024 ranging from £10.50 to £13.68 per sq ft.
Finally, Invista has completed the purchase of Lakeview East, Crossways Business Park, Dartford, from Frogmore for £4.035 mln, representing a net initial yield of 7.93%. The 17,085 sq ft building is let to Kuehne & Nagel Ltd, a German global logistics company, on a new 10-year lease (from October 2009) at a rent of £20 per sq ft.
Robert O’Hara, Head of HBOS Funds at Invista, comments: “These transactions demonstrate Invista’s ability to secure attractive acquisitions, within a fairly tight market, where there is either a strong income stream already in place or where future opportunities have been identified with existing tenants to undertake asset management initiatives to add real value for our clients.”
Duncan Owen, Chief Executive Officer at Invista, stated: “Our current focus is illustrated by purchases we have made in less “fashionable” sectors, which we feel are being less affected by some of the overcorrection being caused by the surge in appetite for real estate and therefore still provide opportunities for us to deliver value on behalf of our clients.”