The Regional Office Property Unit Trust (“ROPUT”), advised and managed by Schroder Real Estate, has acquired The Building, Chiswick; Centrium, St Albans; and Delta House, Glasgow from Colony Capital on 21 December 2018 for a combined total of £31 million. The price reflects a net initial yield of 6.5%.
The Building, Chiswick is a contemporary, standalone office with ground floor retail space in front of Chiswick Park in West London and is a five-minute walk from Chiswick town centre. Built in 2007, the building comprises 21,762 sq ft over five floors with tenants including Deloitte and Berry Appleman & Leiden Ltd. The average rent is £40 per sq ft.
Centrium 1 is a modern office building in St Albans City centre. Built in 2006, it comprises 20,949 sq ft over four floors with tenants including Michael Page International and Sketchers USA. The average rent is £29 per sq ft.
The final acquisition is Delta House, an office building located in Glasgow’s central business district. Built in 1992, it comprises 34,096 sq ft over the ground to ninth floor with tenants including The Scottish Ministers and NewLaw Legal Limited. The average rent is £18 per sq ft.
Tom Newman, Investment Manager at Schroder Real Estate, said:
“This portfolio acquisition offers three good quality, fully let office buildings in strong locations let to good covenants. The acquisition ends a successful year for ROPUT and Schroder Real Estate with additional acquisitions across the regional office market including Cardiff, Nottingham and Edinburgh.
ROPUT now has 15 assets offering good fundamentals at affordable rents in strong and undersupplied regional cities and towns. ROPUT currently has up to £100 million of further funding for immediate investment.”
CBRE acted for Schroder Real Estate.