UK & European sells Volkswagen Financial Services HQ

UK & European Investments has successfully completed the sale of the Volkswagen Financial Services (VWFS) UK Headquarters in Milton Keynes for �50.15 million representing a 4.78% initial yield.

The iconic, 100,000 sq ft office building was designed, built and pre-leased by UK & European for VWFS in 2014 to accommodate the growth of their Milton Keynes operations. VWFS occupy the property on a 25-year lease (with a break in year 20) with five yearly RPI increases.

The building has strong sustainability credentials including BREEAM Excellent, solar panels on the roof which produce energy for the building and electric vehicle charging points. The property has an exceptional internal specification and on-site amenities and was the winner of the BCO Best Fit-Out of Workplace Awards for Midlands & East Anglia in 2016. 

Commenting on the sale, John Stacey, Asset Management Director for UK & European said: UK & Euroean have a fantastic track record for creating best in class buildings and One Delaware Drive is another fine example of our development capability. At a personal level this has been a tremendous project to have been involved with and it is hugely satisfying to see this project through from its inception to construction and concluding with the sale.  

VWFS have been a great partner throughout our period of ownership. However, at this stage in the cycle we feel that it is the appropriate time to trade One Delaware Drive and are delighted to have now completed this sale. The pricing achieved reflects the current levels of exceptional demand and competition for Institutional Grade Buildings that exists throughout the UK. We will continue to pursue opportunities to reinvest our capital across key locations within the UK and European markets.

UK & European was advised by JLL, Hanover Green advised the purchaser.