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News Release

London 22 July

Jones Lang LaSalle advises on £245.1 million SEGRO business park sale

Jones Lang LaSalle’s Capital Markets team advises on successful sale of rare business park opportunity

LONDON - 22 July 2013  Jones Lang LaSalle has advised SEGRO on the sale of the IQ Winnersh business park for £245.1 million to Winnersh Holdings LP,  a joint venture between Oaktree Capital Management LP and Patrizia AG.

 IQ Winnersh 2.jpgIQ Winnersh is a 118,200 sq m mixed use office and light industrial business park close to junction 10 of the M4, near Reading which has been developed over the past forty years, predominantly by SEGRO. Tenants include Intel, Virgin Media, Bang & Olufsen, Daewoo and Jacobs and Harris Systems and a four-star Holiday Inn hotel. The sale also includes 4 hectares of development land.

Following the letting of 3,400 sq m at the newly refurbished E2 office building, announced in April, it had a vacancy rate of 7.5 per cent and a weighted average unexpired lease term to break of 5.5 years.

The sale price represents a net initial yield of 5.8 per cent which rises to 7.4 per cent when the benefit of rental guarantees and top-ups in relation to lease incentives is included. 

Phil Marsden, Lead Director of Capital Markets at Jones Lang LaSalle, said: “SEGRO has invested in IQ Winnersh over many years and turned it into the business hub it has become. The bidding process was extremely competitive and reflected the increasing levels of monies available and the scarcity of this type of stock on the market. The asset attracted global money sources from a wide range of investors.”

Phil Redding, SEGRO’s Chief Investment Officer, added:  “We are very pleased to have been able to secure the sale of IQ Winnersh on these terms, achieved through a competitive tender process and reflecting the attributes of the Park. The sale is very much in line with our ongoing focus on recycling capital out of assets at the appropriate time in the cycle in order to crystallise gains from higher value uses and redeploy funds into other profitable growth opportunities in our core markets.”