Praxis acquires £65m office portfolioDigital Editor
Property investment and management firm Praxis (client) has completed the acquisition of an eight-strong office and business park portfolio from real estate funds managed by Blackstone for £65m, representing a net initial yield of 8.19%.
The portfolio drew interest from a number of parties attracted by the potential of the assets, which are all strategically positioned in prime commercial locations, principally in the south of England, and provide the opportunity to increase value through re-letting and refurbishment.
The portfolio comprises 632,381 sq ft of office accommodation and is currently home to 71 tenants including prominent business space occupiers such as Citibase, Capita Business Services and Shell UK. The vacancy rate currently stands at 23%.
The largest of the assets, at 124,000 sq ft, is the Concord Business Park in Manchester, situated within 5 minutes’ drive of Manchester Airport, while three more – Centric MK, Silbury Court and Workplace Systems – are located in Milton Keynes which has emerged as one of the UK’s most successful urban areas since its creation in 1967.
Praxis has also acquired The Solent Centre – three office, retail and leisure properties on the Solent Business Park, one of the UK’s premier business parks between Southampton and Portsmouth – as well as The Broadlands Business Campus in Horsham and Overbridge Square, a partially vacant business park in the Thames Valley Town of Newbury.
Gary Roberts, Head of Capital Markets at Praxis, said:
“We are delighted to have acquired this significant portfolio. Not only does it provide us with a strong income component, but it also offers us the opportunity to actively manage the portfolio to increase value and maximise returns. We will be committing additional capital to these properties to increase their appeal to occupiers, with the principle objective of improving occupancy and increasing the net income.
“We are seeing an increasing number of opportunities like this where proactive asset management can be used to add value and we will look to deploy more capital into the market while the current market conditions continue to prevail.”