M&G Real Estate has acquired the Quantum Business Park in Maidenhead for GBP46.7 million, representing a net initial yield of 6.7 per cent.
This off market transaction was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley, and deputy manager Justin Upton of M&G Real Estate.
Quantum Business Park comprises two Grade A office buildings totalling 123,217 sq ft, multi-let to six tenants at a rent of GBP3.3 million per annum. It is located 1.5 miles from Maidenhead town centre, is well situated for travel links to London, Heathrow and the South East/West and will benefit from the introduction of Crossrail.
Business activity in the South East continues to flourish as companies increase employee headcount to cope with expanding business, resulting in a growing appetite for office space.
Upton says: “This acquisition furthers the fund’s strategy to acquire modern high quality office assets in growth areas within the South East. The yield of 6.7 per cent is accretive to the existing income return of the Fund and complements our existing prime South East offices portfolio with its blend of town centre and edge of town locations. Aside from the obvious supply demand dynamics, the completion of Crossrail in 2018/2019 is likely to render Maidenhead particularly appealing to occupiers.”