AEW UK Core Property Fund has announced the acquisition of the 7.20 acre Mill Court and Mill Square site on Featherstone Road, Milton Keynes, for £12 million, reflecting a net initial yield of 7.3% and £1.67m per acre.
The asset comprises eight standalone single storey office buildings, with the Mill Square and Mill Court sitting adjacent to each other, providing 48,438 sq ft and 44,917 sq ft of floor space respectively (93,355 sq ft in total). The business park offers efficient, open plan office space and is fully let to seven tenants.
The Mill Court and Mill Square site is located in Milton Keynes, which sits at the heart of the UK’s growth corridor – the centre point between London, Birmingham, Oxford and Cambridge. This exceptional connectivity provides access to a population of 18 million within a sixty-minute drive time. The site itself benefits from excellent road connectivity to Milton Keynes town centre via the A5 dual carriageway and M1. In turn, this provides access to the national motorway network including the M25, M40 and the M6.
Milton Keynes is located at the heart of the strategically important ‘Oxbridge Growth Corridor’ and is expected to benefit from the growing tech and R&D sectors as well as the already booming industrial sector.
Ed Long, Director at AEW, said: “We are pleased to have acquired Mill Court and Mill Square in Milton Keynes. The asset’s characteristics are in line with the fund’s investment strategy of acquiring assets in core locations that are underpinned by strong residual values whilst maintaining an income stream. The income fundamentals are very attractive and set to grow from the increasing demand from the Tech and Knowledge based industries.”