Mountgrange Investment Management has agreed to purchase Meadows Business Park in the UK from financial services group Scottish Widows for £23.5 mln (EUR 26.1 mln). The site has been acquired for a net initial yield of 8.75%.

Mountgrange Investment Management has agreed to purchase Meadows Business Park in the UK from financial services group Scottish Widows for £23.5 mln (EUR 26.1 mln). The site has been acquired for a net initial yield of 8.75%.

The business park comprises four Grade A office buildings totalling 140,000 square feet (13,000 m2) as well as 16,000 square feet of storage space in Camberley, Surrey. With acquisition at a capital value of £150 per square foot, and an estimated replacement cost of £160 per square foot, the purchase represents a highly attractive investment, Mountgrange, a private fund management business specialising in UK real estate, said.

Occupancy levels are currently at 80%. City Link Ltd, Kendle International and the British Cement Association are three of its seven occupiers. There is no planned developments in the vicinity and any future demand for office space should be captured by Meadows, according to Mountgrange.

Rob West, a Partner at Mountgrange, commented: 'Meadows Business Park is clearly a very attractive investment proposition, is a best in class property and with a quality which is rarely available. The purchase price is below the estimated replacement cost, and with little equivalent property in the locality, will prove attractive to new tenants. Mountgrange’s proactive asset management skills will add value to what is already a great site with impressive credentials.'

Completion of the purchase is scheduled for 15 April.

GVA Grimley, Grant Thornton and Nabarro are advising Mountgrange on the deal.