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British Land acquires prime office & leisure scheme in Maidenhead
Modern, high quality town centre property purchased for £74m
Article posted: 30 Jun 2011
British Land has announced that it has purchased Grenfell Island, a prime office and leisure scheme totalling 198,000 sq ft in Berkshire, for £74m representing a net initial yield of 7.5%.
The property comprises 113,000 sq ft of high quality, flexible office space in Maidenhead town centre, let to Hutchison 3G UK Ltd, as the UK headquarters of Hutchison Whampoa Ltd a leading global telecommunications and data services provider. The unexpired lease term is 9.5 years. There is an additional 85,000 sq ft of leisure accommodation in an adjoining building anchored by a 10-screen Odeon cinema and health club. The weighted average lease length for the entire property is 10.7 years.
Grenfell Island was completed in 2000 and is situated opposite Maidenhead’s mainline railway station within the town centre’s core commercial district. Located just 30 miles from the centre of London, Maidenhead is considered to be one of the strongest South East office markets, attracting major occupiers such as Adobe, GlaxoSmithKline and Johnson & Johnson, as well as Hutchinson 3G.
Tim Roberts, Head of Offices at British Land said, “Grenfell Island is a modern, well let property in a town which is expected to be a major beneficiary of the investment in Crossrail. The acquisition provides British Land with an attractive income return in an improving occupier market and fits well within our strategic priority of creating sustainable and growing property rental streams. It also has significant capital appreciation potential given both the future benefits of Cross Rail and as the markets in the South East continue to improve.”
Knight Frank represented British Land and Lambert Smith Hampton acted for the private vendor.
Last month British Land scooped a prize tenant for its landmark development of office space in the City of London. Aon signed a pre-let agreement for 191,000 sq ft of Grade A accommodation at The Leadenhall Building with an option to take a further 85,000 sq ft.
Posted by Jo
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