Aviva Investors has sold AbbVie House, Maidenhead, for £24.425m, reflecting a net initial yield of 5.42%. Purchased by Rasmala Plc, this transaction reflects a benchmark yield for out of town offices in the South East.
Charlie Lake, capital markets director, Lambert Smith Hampton, comments: “We secured extremely strong interest for the property, with proposals received predominantly from overseas investors which is reflected in not only the price achieved but the swift period to exchange. Not only does this cement the global appeal of the Thames Valley office market, but also shows the depth in pricing, for the right product, despite the ever increasing uncertainty in the lead up to the referendum.’
Naseer Aka, Head of Real Estate at Rasmala, explains: “We are pleased to have successfully completed the acquisition of AbbVie House on behalf of our investment partners in the GCC region. It is a further validation of our strategy to invest in a broad range of real estate transactions in order to meet the growing investor demand for secure long-term income.”
Louise Swinden of Aviva Investors adds: “Our investment in AbbVie House has performed well, having actively managed the asset by taking back possession from the original tenant, Pfizer, and comprehensively refurbishing for AbbVie in 2014. Securing a 10 year income with a strong covenant has positioned the asset well to meet investor demand in the current market.”
Lambert Smith Hampton agreed the letting of building to the original and current tenants and has a long involvement with Aviva Investors. AbbVie House is a 55,958 sq ft grade A prime headquarters office building located on Vanwall Park, one of the Thames Valley’s premier business parks. Already benefitting from good transport links, Crossrail and Western Rail Access to Heathrow are set to further improve Maidenhead’s connectivity. Constructed in 2004 and comprehensively refurbished in 2014, the building is let in its entirety to AbbVie Ltd, for a term of 11.5 years from July 2014.
Lambert Smith Hampton acted for Aviva Investors. BNP Paribas acted for Rasmala Plc.
