M&G acquires UK business park at 6.7% yield

London-based fund manger M&G Real Estate has acquired Quantum Business Park in the southeastern English town of Maidenhead. The investment volume of just under £47 mln (€58 mln) represents a net initial yield of 6.7%.

M&G Real Estate carried out the off-market transaction on behalf of the M&G Property Portfolio.

Quantum Business Park comprises two Grade A office buildings totalling 11,430 m2, multi-let to six tenants at a rent of £3.3 mln per annum. It is located 1.5 miles from Maidenhead town centre and is well situated for travel links to London, Heathrow and the South East/West and will benefit from the introduction of Crossrail.

Companies are increasing their employee headcount to cope with expanding business activity in the South East, resulting in a growing appetite for office space, according to M&G Real Estate.

M&G is the investment arm of UK financial group Prudential. M&G Real Estate is one of the top 25 real estate fund managers in the world by assets under management, with over £18.4 bn invested in properties across Europe, North America and the Asia-Pacific region at end-March 2014.