Lambert Smith Hampton has acquired Linea House, Ancells Business Park, Fleet, on behalf of Kingsbridge Estates, for £3,725,000, reflecting a net initial yield of 7.62%.
The 22,062 sq ft building located on an established business park is let to four tenants – Verisk Analytics Limited, Anite Telecoms Limited, Grass Roots Meetings & Events Limited and PRMA Consulting Limited.
Driven by a forecast increase in demand and rental growth due to the amount of supply that has left the Fleet market for permitted development, the acquisition of Linea House is a comfortable fit into the Kingsbridge Estates portfolio, with key properties located in Slough, Bracknell, Southampton and Chichester.
Jerry Vigus, director of capital markets at Lambert Smith Hampton, explains: “Linea House is effectively let below passing rent, averaging £14.05 per sq ft compared with similar buildings on Ancells Business Park, which are let at £18.00 per sq ft. This offers Kingsbridge Estates significant potential rental growth being purchased with a low capital value of circa £170.00 per sq ft. A number of buildings on the Ancells Business Park have been sold for permitted development and this also offers an alternative use for Kingsbridge Estates in the future.”
“The seller, Craigard Investments Limited, acquired the property 15 months ago and carried out successful letting to tenants who are committed to the building and the location.”
Estates Director at Kingsbridge, Mark Hooper says: “Linea House very much appealed to Kingsbridge Estates since it it fulfils our criteria of being a high quality asset in a prosperous area with an attractive business space.”
“We like properties that are close to motorways, railway stations and good quality housing. Fleet has a good range of housing, a solid and diverse commercial base with a considerable degree of history, including connections with the military and the techology sector in particular.”
We very much look forward to working with our occupiers and the managing agents Marshall Clark.