LGIM Real Assets has announced that it has completed the sale of Honeywell House, Bracknell town centre, to Runnymede Borough Council for £32.9 million, reflecting a net initial yield of 5.32%.
Honeywell House comprises 72,604 sq ft of Grade A office space and is let with a strong tenant covenant to Honeywell Control Systems Limited. In 2019, LGIM Real Assets carried out extensive refurbishment of the asset as well as completing a re-gear with occupiers Honeywell agreeing a new 11.5 year term. This transaction enabled Honeywell to have Bracknell as their new headquarters and delivered significant added value.
Matt Jarvis, Senior Fund Manager at LGIM Real Assets, said: “Having acquired the asset for £23.2 million in 2015, the sale of Honeywell House for £32.9 million marks the conclusion of a highly successful asset management programme, having re-geared the lease with Honeywell last year. We initiated the sale of this asset in January 2020 and are pleased at the price we have achieved. This sale demonstrates that despite a more challenging market, strong assets continue to generate interest.”
The sale of Honeywell House to Runneymede Borough Council forms part of their investment strategy to acquire high quality assets to secure income in order to fund an in-borough regeneration programme.
Colliers acted for Legal & General on this deal and TT&G advised Runnymede.