London & Stamford Property has exchanged contracts to acquire the Marlow International office building from Avestus for £50 mln (EUR 62 mln), excluding costs, in a deal reflecting a net initial yield of 8.9%.
London & Stamford Property has exchanged contracts to acquire the Marlow International office building from Avestus for £50 mln (EUR 62 mln), excluding costs, in a deal reflecting a net initial yield of 8.9%.
The property is a Grade A office building comprising 21,500 m2 of space and was comprehensively refurbished in 2000. It is let in its entirety to Allergan, Veolia Water Solutions and Dun & Bradstreet for a weighted average unexpired term of seven years. The property includes a 500 cover restaurant and 854 underground and ground level car parking spaces.
London & Stamford said that leverage will be applied to this asset in a cross collateralised arrangement with Unilever House, Leatherhead. The cash yield on the combined portfolio will then be 11.2%.
'Following the announcement of our acquisition of Unilever House, Leatherhead, last week, we are delighted to announce our second office investment in the South East,' said Raymond Mould, chairman of London & Stamford.
Irish investor Quinlan Private bought Marlow International in 2006 for £69 mln.
