Orchard Street Investment Management has completed the acquisition of the Velocity office development in Weybridge, south of London, for £56 mln (€76 mln), reflecting a net initial yield of 5.7%.

Orchard Street Investment Management has completed the acquisition of the Velocity office development in Weybridge, south of London, for £56 mln (€76 mln), reflecting a net initial yield of 5.7%.

The asset was acquired on behalf of Orchard Street UK Prime Property from Rockspring Property Investment Managers' UK Value fund.

Completed in 2013 by Rockspring and Exton Estates, Velocity comprises 106,400 sq ft (9,900 m2) of office space split across two independent buildings – Velocity One and Velocity Two, totalling 58,393 sq ft and 48,007 sq ft respectively.

The property is 76% let to three tenants, LG Electronics, Cargill and Tomy UK Co, providing a weighted average lease length of just under 12 years.

Barney Rowe, partner at Orchard Street, commented: 'We are pleased to have secured this highly liquid, prime office asset in an area of the UK that has seen strong occupational demand and is forecast to continue experiencing rental growth over the coming years.'

Richard Bains, partner and fund manager of the Rockspring UK Value series, added: 'Velocity was one of the first forward-funded speculative office developments in the South East following the global financial crash, and through capitalising on attractive pricing opportunities, Rockspring were able to construct and deliver Grade A office space in an unrivalled location. The strategic sale of this asset has achieved strong returns for our UK Value fund investors.'

Orchard Street was advised on the deal by Strutt & Parker. Rockspring was represented by CBRE.