Max Property Group announced on Monday that it has exchanged contracts for the acquisition of 10 office investments in the UK from UBS Triton Property Fund.
Max Property Group announced on Monday that it has exchanged contracts for the acquisition of 10 office investments in the UK from UBS Triton Property Fund.
The transaction is structured as an unconditional purchase of nine freehold and one peppercorn (nominal payment) leasehold investments for a contract price of for £36.5 mln (almost EUR 42 mln), plus acquisition costs, with completion due on 5 February, 2010. The agreement covers the purchase of one freehold property at Farnborough for £900,000 conditional on confirmation of planning consent for unrestricted office use within a four-month period.
The vendor is placing £5.9 mln in an escrow account which can by drawn by Max against irrecoverable expenses in respect of vacant space up to the end of 2012.
The properties are typically late 1980s air-conditioned business parks predominantly located in the South East. Triton has been carrying out a rolling refurbishment programme with over two thirds of the vacant space now refurbished.
The 70,000-m2 portfolio produces a rent roll of £5 mln per annum and is 46% vacant by floor area, with a rental value on the vacant space of circa £3.5 mln per annum. The net initial yield on the transaction is 12.7%.
Franc Warwick acted for Max and Tudor Toone acted for UBS Triton.
