M&G Property Portfolio acquires Chiswick Green development property
The M&G Property Portfolio has acquired a commercial property development in Chiswick Green, West London from BAM Properties for GBP47.7m at a yield of approximately 6.30 per cent.
The development is a seven storey Grade A BREEAM Excellent building located in a prominent position on Chiswick High Road and benefits from the latest technology to reduce energy requirements and carbon emissions.
Viasat Broadcasting, the Swedish communications giant, now occupies 82 per cent of the building (66,500 sq ft) at a rent of GBP39 per sq ft on a lease for 15 years.
Clwyd Roberts, development director of BAM Properties, says: “Chiswick Green is the latest successful example of our strategy of developing highly sustainable buildings in prime locations. We based our decision to re-enter the market in 2010 on a careful assessment that there would be demand for well-let, high quality investment stock and our judgement has proved correct.”
Fiona Rowley, manager of the M&G Property Portfolio, says: “This acquisition furthers the Fund’s strategy to invest in core office locations that reflect rental growth opportunities going forward. The imbalance of supply and demand dynamics within the micro-location coupled with the modern flexible BREEAM Excellent space make this an exciting opportunity whilst providing the Fund with a strong income profile going forward.”
Cushman & Wakefield advised BAM Properties.