Rockspring Property Investment Managers has agreed the sale of The Stanza Building, a brand new office headquarters in Uxbridge, to NFU Mutual Insurance Society for GBP43.075m.
The sale, which reflects an initial yield of 5.72 per cent, follows the letting of the entire building to Nexen Petroleum UK in July, on a 12 year lease at GBP32 per sq ft.
Hanover acquired the scheme in November 2011 as a speculative development in partnership with Bell Hammer and it was completed in November 2012. The building is located adjacent to the Grand Union Canal in Uxbridge with waterfront views and provides 80,745 sq ft of Grade A office space and 91 car parking spaces. With a BREEAM rating of ‘very good’ and an Energy Performance Certificate of ‘B’, the building incorporates numerous sustainable features including solar panels, rainwater harvesting and an energy saving lighting design.
Hanover is a pro-actively managed, UK focused, open-ended fund that has been delivering income and capital growth to professional investors for 45 years.
Mischa Davis, Rockspring Hanover fund manager, says: “Today’s deal represents the successful completion of Hanover’s strategy for The Stanza Building, having foreseen the impending shortage of Grade A stock we had the belief to commit to the development when the market was still in recession. We hope that the success of this project provides encouragement to investors to step up the risk curve away from defensive long income strategies. The ongoing lack of Grade A product suggests further scope for profitable development on a selective basis and the rebasing of non-core asset pricing, in terms of both rents and capital values, pointing to greater opportunity for relative outperformance from the non-core segment of the market over the next phase of the cycle.”
Jones Lang LaSalle acted on behalf of NFU Mutual Insurance Society.