UK investment manager Threadneedle has acquired an office property in the Hertfordshire town of Hemel Hempstead, located 39 kilometres northwest of London. The investment volume of £18 mln (€23 mln) reflects a net initial yield of 7.75%.
UK investment manager Threadneedle has acquired an office property in the Hertfordshire town of Hemel Hempstead, located 39 kilometres northwest of London. The investment volume of £18 mln (€23 mln) reflects a net initial yield of 7.75%.
The asset - Hemel One on Boundary Way - comprises 96,000 square feet (8,900 m2) of office over four floors. The building is fully let to a range of companies, including Ericsson, Kcom and BP with an average weighted unexpired term of 5.4 years to expiries and 2.6 years to breaks.
The vendor is RO Real Estate.
Since acquiring the property in 2005 from 3Com, RO Real Estate has added significant value through a number of initiatives, including a comprehensive refurbishment, which have led to an increase in the headline rent from £12/sq ft to £17/sq ft. The property has delivered a net rental income of £1.46 m p.a.
Richard Bourne, head of RO Real Estate, said: 'Hemel One has been a classic RO refurbishment and asset management play. We were able to refurbish the building, retain tenants and then lease the remainder of the space on traditional and innovative, semi-serviced office solutions.'
Knight Frank acted for RO Real Estate, while Deloitte acted for Threadneedle.
