2018 has proved to be a busy year for Hicks Baker at Diddenham Court, a c. 22,000 sq. ft courtyard office development just south of M4 Junction 11 near Reading. As well as managing the estate, Hicks Baker has seen good activity in both the investment and occupational markets during the course of the year with a number of successful transactions completed.
Acting on behalf of private clients, Hicks Baker has disposed of two office investments at Diddenham Court. Two adjoining offices, Units 8 and 9, have been sold for a combined price of £485,000, representing a Net Initial Yield of 4.84%. Both offices are let on coterminous FR&I leases to LEBC Group Limited for a term of 5 years. A combination of the term certain and the 3A1 covenant strength of the tenant made it an attractive investment for the purchaser who used their SIPP fund as the purchase vehicle.
The marketing campaign highlighted that their continues to be a high level of demand for office investments from both SIPP and SSAS private investors. We expect to see this trend continue over the coming months.
The investment deals are also underpinned by good occupier interest in these attractive small units, as demonstrated by 2 lettings on the estate concluded by Hicks Baker’s business space team.
Acting on behalf of other private clients, Unit 14 (2,956 sq ft.) has been let to The Sovereign Cruise Club whilst the adjoining Unit 15 (1,350 sq ft.) has been taken by Enviromena Power Systems. Both properties have been let on new 5 year leases at a rent of £22.00 per sq ft. Simmons & Sons of Henley acted for The Sovereign Cruise Club; Enviromena was unrepresented.