Valad Europe acquires three UK offices for Valad European Diversified Fund
Valad Europe has acquired three office buildings totalling 62,878 square feet at Wexham Springs Office Park, Buckinghamshire in two separate transactions for a total of GBP15.49m.
The purchases were completed on behalf of the Valad European Diversified Fund (VEDF).
The Gallions and Furzney assets were acquired from PM Mercury Holdings, a joint venture between funds managed by Mountgrange Investment Management and Patron Capital, for GBP9.26m, reflecting a net initial yield of 8.2 per cent.
The Rowley Building was acquired from the Clerical Medical Investment Group for GBP6.23m, reflecting a net initial yield of 8.5 per cent.
All three assets are located in Wexham Springs (pictured), an office park comprising four headquarter buildings set in 39 acres of parkland between the M40 and M4 motorways, in close proximity to Slough. Existing tenants include Otsuka Pharmaceutical Europe, Sun Chemical and Servier Laboratories.
David Kirkby, Valad Europe’s chief investment officer, says: “These office buildings are a great example of the type of assets we are targeting for VEDF in the UK, being good quality, well located assets with strong credit tenants. All of the assets provide opportunities to enhance income through active asset management strategies.
“We launched VEDF to take advantage of an anticipated narrowing of prime-secondary spreads both in the UK and Germany over the course of the Fund’s life. In the UK, we are targeting offices in regional city centres, especially in the South East, and retail warehouses, while in Germany we are looking for offices in the top and second tier cities and nationwide distribution warehouses.”
Knight Frank acted for Valad Europe and Capita acted for the vendors.
The Valad European Diversified Fund launched with initial equity of GBP150m to invest and a total fund capacity of GBP375m, employing leverage between 50 and 65 per cent. The fund invests in core plus/value add assets in the UK and Germany with individual lot sizes between GBP5m and GBP35m. The fund will also invest in small to medium sized portfolios.
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