Property Fund Manager Legal & General Property has bought an office building in Maidenhead. The building was bought from Aberdeen Asset Management for £6.9 million with a net initial yield of 5.66%. Aberdeen was advised by Deloitte Real Estate on the sale.
Legal & General Property is a wholly-owned subsidiary of Legal & General Investment Management (LGIM) and UK’s fourth largest institutional Property Fund Manager. Just recently the fund manager acquired an office building in Maidenhead at 80 Moorbridge Road. The office was sold by Aberdeen Asset Management for £6.9 million with a net initial yield of 5.66%. Legal & General Property was assisted in the buy by Doherty Baines.
The office building was constructed in 2009 and comprises 18,894 square feet that are currently rented out for £21.88 Price per Square Foot (PSF) to Maersk Line, Reed Elsevier and Anaplan. According to James Whitehill, Senior Property Fund Manager at Legal & General Property, these low rent prices could significantly rise. “80 Moorbridge Road is a relatively new building that is well designed and offers good quality office space. Let off low rents, the property offers the opportunity for strong rental growth over the medium term and should significantly benefit from the Crossrail effect.”
Guy Freeman, UK Investment Agent at Deloitte Real Estate, was hired to advise Aberdeen Asset Management on the sale of the Maidenhead office. “We received very strong institutional interest in this asset from parties that have been looking to capitalise on the recovery in the South East occupier markets and growing rents. Maidenhead should continue to outperform other submarkets and when Crossrail opens the situation can only improve.”