Patron/APAM buy £75m South East business park

This is a republication of an article which appeared on the CoStar website at: http://www.costar.co.uk/en/assets/news/2015/February/PatronAPAM-buy-75m-South-East-business-park/
Patron Capital and APAM have bought Arlington Business Park in Theale from Goodman and Legal & General’s joint venture Arlington Business Parks Partnership, for circa £75m, reflecting an 8.7% net initial yield.
The assets sold at Arlington Business Park comprise 435,000 sq ft of offices with circa 100,000 sq ft of vacancies. The annual rent roll is £6.8m.
It is understood that Patron and APAM, which is a minority co-investor and the asset manager, plan to upgrade the complex and lease it up.
The deal follows Harbert Management Corporation and asset manager XLB’s acquisition of Project Emperor, a portfolio of UK business park assets, for £137m, from Arlington Business Parks Partnership, last year.
The portfolio of nine assets across the UK offered a mix of city centre and business park locations at Oxford Business Park, Hatfield Business Park, Crowthorne House, Bracknell, Solent Business Park, Fareham, Colton Square, Leicester, Leeds Valley Park, Rainton Bridge, Sunderland, Central Quay, Glasgow, and Broadway Park, Edinburgh.
Goodman and L&G have been recycling proceeds from sales from the fund elsewhere in their portfolios.
The Theale Arlington business park was one of the first Raymond Mould and Patrick Vaughan business park collaborations in the UK. It was originally larger but was split into two parts with the remainder recently acquired by Praxis.
Strutt & Parker has been advising the Arlington Business Parks Partnership on its disposals. Tudor Toone advised Patron/APAM.

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