Legal & General Property, on behalf of the Managed Fund, has acquired the long leasehold interest in 194, 196 and 198 Cambridge Science Park from Trinity College, Cambridge for circa £35m, reflecting a net initial yield of 6.62%.
The property comprises three office buildings totalling 108,000 sq ft completed in February 2009 and arranged over ground, first and second floors.
The buildings occupy a 6.5-acre site along with 382 parking spaces. They are let to two tenants, Napp Pharmaceutical Holdings and Mundiphama Research. The building holds an average unexpired lease term of 9.58 years at a combined rent of circa £2.45m pa.
Established by Trinity College Cambridge in 1970, Cambridge Science Park, Milton Road provides over 1.5m sq ft of offices and is home to over 100 high tech companies.
Mark Rusell, Fund Manager of the Managed Property Fund, said: “This acquisition is in line with the Fund’s sector strategy to purchase high quality office park investments offering income security and medium-term active management potential.
“Cambridge Science Park is well-regarded for research and development activities, an area which we consider will perform strongly in the medium-term economic context.
“Whilst significant rental declines have been apparent elsewhere, top rents in the Cambridge out-of-town market have continued largely unchanged and, with a restricted supply pipeline, they are expected to remain robust.
“The acquisition also provides an opportunity for the Fund to add to a growing stock of held assets with strong environmental and sustainability credentials.”
Jones Lang LaSalle acted for Legal & General Property and Bidwells advised Trinity College, Cambridge on the sale.
paul.norman@estatesgazette.com
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