Episo 3, the value-add/opportunity fund managed by Tristan Capital Partners, has acquired a half-vacant office campus near London. The vacant space is to undergo a refurbishment programme as part of a total investment of £32.5 mln (€45 mln).
Episo 3, the value-add/opportunity fund managed by Tristan Capital Partners, has acquired a half-vacant office campus near London. The vacant space is to undergo a refurbishment programme as part of a total investment of £32.5 mln (€45 mln).
The 16,000 m2 Westside campus is located in Hemel Hempstead, near the M25 orbital motorway and 30 km northwest of central London.
The property was sold by a consortium of private investors. The refurbishment, scheduled for completion by mid-2016, will provide 8,400 m2 of Grade A offices in an undersupplied market, Tristan said.
Peter Mather, managing director of investments at Tristan, said: 'This is a compelling investment because it will unlock the potential of the property in a supply-constrained market. It is well located in an area where there is relatively little competing space, while rents remain affordable compared with the western section of the M25 and West London.'
Central to the transaction was the negotiated early surrender of telecom group BT’s overriding lease of Westside, which was due to expire in 2019. BT sublet space to Epson, Serviced Office Group and HSBC, which have become direct tenants following the purchase of the campus by Episo 3.
The rest of the campus is vacant, reflecting how the short length of BT’s lease and the unrefurbished condition of the remaining accommodation had deterred prospective tenants, Mather added.
Westside was originally developed in 1990 and has strong road and rail links. The campus is strategically located close to Junction 20 of the M25 motorway, which links onto the nearby M1 motorway serving northern England. The site is a five-minute walk from Apsley railway station.
Alchemy Asset Management, a specialist office management company, will undertake the refurbishment project in partnership with Episo 3.
Lewis Ellis acted for Episo 3 and Alchemy, while JLL advised the vendor. BLP acted as legal adviser to the fund.