Melford Capital has put the Rackspace City campus near Heathrow up for sale with a £120m price tag.
Knight Frank has won the instruction to bring the soon to be completed 340,000 sq ft grade-A Hayes office development to market. The price reflects a 7% yield.
The 10-acre campus – which is substantially let to cloud computing firm Rackspace, generates rent of £8m pa, which is expected to rise significantly when the development is completed. Rackspace’s deal at the park last year was one of the biggest Thames Valley office deals in 2013.
Strong interest is expected as a result of the site’s proximity to central London when Crossrail opens in 2018.
The freehold to the site was acquired in 2011 by funds advised by Melford Capital, which has invested heavily in the scheme.
Freddie Owen, surveyor at Knight Frank, said: “This is a strategically important location in west London and we expect a lot of interest. It offers a secure income stream from a tenant growing its occupation consistently at 20% per year, and there is still room for significant further development at the site.”
joanna.bourke@estatesgazette.com
