RLAM bags trio of Cambridge offices for £44.5m

Royal London Asset Management has bought a further three buildings at Cambridge Research Park in a bid to become the sole owner of the estate. Buildings 1000, 2000 and 9000, which provide a combined 120,000 sq ft of workspace, were bought in a £44.5m off-market transaction from Columbia Threadneedle Investments, on behalf of Zurich Assurance. The deal represents a net initial yield of around 5.5%. Building 1000 comprises 36,000 sq ft of grade-A multi-let office space close to the A10, offering future repositioning opportunities. Refurbishment initiatives are under way for the 20,500 sq ft Building 2000, with a view to improving the EPC rating to B and potential provision of lab-enabled space on the ground floor. Building 9000 is a 64,000 sq ft office and production facility and is let on a long lease to telecoms and radio development company Sepura. This acquisition follows the off-market purchase of the 30,200 sq ft Building 3000 earlier this year from the Property Income Trust for Charities, a fund managed by Swiss Life Asset Managers UK. RLAM secured the first chunk of Cambridge Research Park, spanning 112 acres, in 2018 in a £78m deal with Rockspring Property Investment Managers.  To date, 300,000 sq ft of business space has been built at Cambridge Research Park, and there is consent for a further 211,000 sq ft of office, laboratory and research and development space, which is expected to come out of the ground in 2025-26. Most recently, RLAM delivered a 90,411 sq ft R&D scheme comprising 11 facilities ranging from 4,700 sq ft to 13,900 sq ft to support tech and scientific occupiers.  Will Hawking, head of life sciences at Royal London Asset Management Property, said: “The acquisitions of four prime buildings at Cambridge Research Park mark a strategic milestone in expanding our life sciences portfolio. This acquisition allows the team to consolidate our ownership and continue our strategy to deliver a wider campus masterplan to support the next phases of development. “Establishing a majority ownership signifies our commitment to enhancing our presence at Cambridge Research Park, a pivotal location within the Golden Triangle, and underscores our dedication to a sustainable, tenant-centric investment approach. We anticipate offering top-tier lab space in the region for the foreseeable future, addressing the pressing need for premium facilities.” Image from XLB Property