Legal & General Property, on behalf of the Managed Fund, has acquired the long leasehold interest in 194, 196 and 198 Cambridge Science Park from Trinity College Cambridge for circa GBP35m, reflecting a net initial yield of 6.62 per cent.

The property comprises three office buildings completed in February 2009 and arranged over ground, first and second floors. 

Occupying a 6.5 acre site, the buildings provide approximately 108,000 square feet of office accommodation along with 382 parking spaces. 

Let to two tenants, Napp Pharmaceutical Holdings and Mundiphama Research, the property holds an average unexpired lease term of 9.58 years at a combined rent of circa GBP2.45m per annum.

Established by Trinity College Cambridge in 1970, Cambridge Science Park is the UK’s oldest science park. The park, which provides over 1.5 million square feet of office accommodation, is home to over 100 high tech companies ranging from small start-ups and spin-outs to subsidiaries of multinational corporations.

Mark Rusell, fund manager of the Managed Property Fund, says: “This acquisition is in line with the fund’s sector strategy to purchase high quality office park investments offering income security and medium-term active management potential.

“Cambridge Science Park is well-regarded for research and development activities, an area which we consider will perform strongly in the medium-term economic context.  Whilst significant rental declines have been apparent elsewhere, top rents in the Cambridge out-of-town market have continued largely unchanged and, with a restricted supply pipeline, they are expected to remain robust.  The acquisition also provides an opportunity for the fund to add to a growing stock of held assets with strong environmental and sustainability credentials.”

The latest acquisition by Legal & General Property at Cambridge Science Park, it follows the purchase of buildings 214, 216 and 240 on behalf of the Property Unit Trust in June 2010 for GBP17.75m, representing a net initial yield of 7.775 per cent.