Orchard Street Investment Management LLP, the specialist commercial property investment manager, has purchased the Network Portfolio from DTZ Investment Management (DTZIM) for £35.45 million, reflecting a net initial yield of 8.3%.
The Network Portfolio comprises five prime offices located in Greater London and the South East: The Vitrum Building in St John’s Innovation Park, Cambridge; 1 The Square, Stockley Park, Uxbridge; 1 Farnham Road, Guildford; Florey House, Oxford Science Park; and, John Eccles House, Oxford Science Park.
With a combined total floor area of 142,398 sq ft, the portfolio is let to 10 tenants on 14 leases including HSBC Bank Plc, Samsonite Ltd, MWB Business Exchange and Pharma Ventures Ltd. The total unexpired lease term is 5.57 years (3.25 years to breaks) and the portfolio currently generates around £3,112,913 of income per year.
Commenting on the acquisition, Barney Rowe, Partner at Orchard Street, said:
“Let off low rents and located in prime South East of England locations, the assets in the Network Portfolio provide an excellent opportunity to add value through lease regears and targeted asset management initiatives. We are delighted with this acquisition and look forward to getting on with the task in hand. ”
Kevin O’Connor, Director of Investment Management at DTZIM, commented: “The disposal of the Network Portfolio along with offices at Vanwall Business Park, Aztec West, and Edinburgh Park was a key strategic objective when DTZ Investment Management took over the management of National Grid Pension Fund in 2012. The Fund is now focussed on acquisitions of larger and multi-let assets more suited to a fund of this scale.”
DTZ acted for the vendor and Strutt and Parker for Orchard Street Investment Management.
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.