We advised Worthing & Adur Borough Council on their successful acquisition of Building One, Abingdon Business Park, a 28,600 sq ft headquarters office building for £9.6m, reflecting a net initial yield of 5.79%.
The asset is located in the established 50-acre business park in the heart of Oxfordshire’s economic and knowledge corridor. The property was extensively refurbished to modern specification in 2016, and was subsequently let to Gigaclear PLC in April 2018 for a 10 year term with no tenant breaks, offering the council a strong security of income. Due to the recent refurbishment there was also limited requirement for capital expenditure during the term, improving the return profile.
The RPI-linked rent review in the fifth year, collared and capped at 2% and 4%, guaranteed the council rental growth during the term. The asset was secured off-market from the vendor.
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