M&G Real Estate has acquired Meridien House in Watford from IVG for GBP19 million, reflecting a net initial yield of 5.9 per cent.
The purchase was made on behalf of a UK property strategy managed by Dermot Kiernan of M&G Real Estate.
Situated on Clarendon Road in close proximity to Watford’s mainline station, Meridien House occupies a prime position within the town’s office market and comprises approximately 60,000 sq ft of Grade A office accommodation.
The building is multi-let to eight tenants at a rent of GBP1.18 million per annum.
Kiernan says: “The availability of South East office investments such as Meridien House remain limited given the growing strength of occupational demand and the relative lack of attractive space.
“South East offices were the best performing IPD segment in Q1 of this year, benefitting from a rapid compression in yields and strong rental growth - an attractive proposition for institutional investors looking to benefit from the on-going recovery. The purchase of this asset will complement the Fund’s other recent South East purchases that also have strong growth prospects.”
M&G Real Estate was advised by Knight Frank. Bray Fox Smith represented IVG.