LONDON: Circle Property Plc has announced the acquisition of Concorde Park, Concorde Road, Maidenhead, a south east office park for £14.6 million.
Circle Property invests in, develops and actively manages well-located regional office assets.
The 71,500 sq ft park is currently 36.6% let to three tenants producing a combined rental income of £627,372 per annum. There is a vacant area of 45,328 sq ft with 21,346 sq ft under offer or in negotiation. The property benefits from being rebuilt in 2007 by LaSalle UK Ventures Property to a high specification including four new lifts, air conditioning and full height glazed atriums at a cost of around £7.4 million.
The acquisition of this well-located property, which is set to benefit from Crossrail, was primarily funded by a £12.791 million drawdown from the Company’s recently agreed £100 million bank facility with RBS and HSBC. The acquisition price represents a net initial yield of 4.03% with a potential reversionary yield of 9.8% once fully let.
John Arnold, Chief Executive of Circle Property Plc, said: “We are pleased to have completed this acquisition of Concorde Park for a consideration of £14.6 million. We believe we can add significant value to the property using our expertise in active asset management to drive rents. This acquisition is a further demonstration of Circle’s successful strategy which has driven sector leading returns since its IPO in 2016.”