Rockspring Property Investment Managers has acquired Abingdon Business Park in the UK for £36.4 mln (€50 mln), reflecting a net initial yield of 7.2%.
Rockspring Property Investment Managers has acquired Abingdon Business Park in the UK for £36.4 mln (€50 mln), reflecting a net initial yield of 7.2%.
The asset, bought from Standard Life Investments, is earmarked for Rockspring's UK Value 2 fund, bringing the fund's total asset value to over £300 mln.
Abingdon Business Park is a mixed-use scheme comprising 36,510 m2 of office and industrial space across five buildings, as well as land for development. The park is located in Abingdon, a market town situated six miles south of Oxford, and is currently 72% let to 45 tenants, including Orchid Cellmark, UK Mail and Taylor Wimpey.
XLB, which currently works on behalf of Rockspring at Cambridge Research Park, will also act as asset and development managers at Abingdon Business Park.
Richard Bains, Rockspring partner and fund manager of the UK Value series, said: 'This acquisition is in line with the fund’s strategy to acquire assets that will benefit from a proactive asset management strategy in order to drive returns for the fund. We intend to capitalise on the opportunity to modernise the asset, reduce vacancy and drive rental growth through re-gearing and extending existing leases and developing the remaining land.'
Rockspring recently announced the final close of UK Value 2 which, at eight months, was the fastest fundraise Rockspring has achieved in its 30-year history. Rockspring secured a total of £342 mln of equity from 11 investors for the fund, which will have a duration of seven years. The vehicle, which has a core-plus strategy, will be 50% geared to provide total firepower of £650 mln.
CBRE acted for Rockspring on the transaction, while the vendor, Standard Life Investments was advised by DTZ.