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News Release

London

​L&G acquires South East office portfolio for £135.5m


Legal & General Property (LGP) has purchased a South East office portfolio (known as “Compass”) for £135.5m. Sold by JLL and Capital Real Estate Partners on behalf of a private family office client, the six high quality offices are located in the towns of Weybridge, Maidenhead, Slough, Bracknell, Basildon and Cobham.


All properties are held freehold and are single let, with current tenants including Costain, Oracle, Proctor & Gamble and Honeywell. The portfolio spans 452,233 sq ft, has an average rent of £20.61 per sq ft and a current total income of circa £9.3 per annum. The portfolio was purchased by L&G’s UK Property Fund, a Property Authorised Investment Fund.


Matt Jarvis, Fund Manager at Legal & General Property, said: "This was a great opportunity to acquire high quality assets in strong South East towns where occupier demand remains high but investment opportunities are often few and far between. The portfolio is fully let by blue chip tenants and its underlying strengths make it a natural fit for our UK Property Fund. They are decent income-producing assets and we see further potential for asset management by our team.”


Noel Lander, Director, South East Office Investment at JLL, said: “A portfolio of this scale and quality is, and will remain, a rare commodity. Combining this with an opportunity to enhance and drive future performance through rent reviews and negotiating lease re-gears meant the portfolio was met, as expected, with a high level of interest from investors. The sale of this portfolio highlights the strength of demand for South East offices, which continue to show a discount in pricing compared to both Central London and the ‘Big Six’ regional office centres.”