Praxis acquires UK regional office portfolio for £65m

Investment firm Praxis has acquired a portfolio of eight UK office properties from Blackstone-managed real estate funds for £65 mln (€89 mln), reflecting a net initial yield of 8.19%.

The portfolio comprises offices and business parks in Manchester, the midlands and the south coast, comprising 58,792 m2 of space, with a vacancy rate of 23%. The 71 tenants include Shell UK, Citibase and Capita Business Services.

The largest asset is the 11,500 m2 Concorde Business Park near Manchester Airport, while three more – Centric MK, Silbury Court and Workplace Systems – are located in Milton Keynes.

Praxis has also acquired the Solent Centre - three office, retail and leisure properties on the Solent Business Park between Southampton and Portsmouth - as well as The Broadlands Business Campus in Horsham, West Sussex, and Overbridge Square in Newbury, West Berkshire.

Gary Roberts, head of capital markets at Praxis, said: ‘We are delighted to have acquired this significant portfolio. Not only does it provide us with a strong income component, but it also offers us the opportunity to actively manage the portfolio to increase value and maximise returns. We will be committing additional capital to these properties to increase their appeal to occupiers, with the principle objective of improving occupancy and increasing the net income.’