Reading

Our work - 05/02/2019

Caversham Bridge House, Reading: acquisition of a 23,624 sq ft office building

Advised LSH Investment Management on behalf of Mansfield District Council.

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We advised LSH Investment Management on behalf of Mansfield District Council on their successful acquisition of a 23,624 sq ft office building for £9.2m, reflecting a net initial yield of 5.10%. 

The building is located in Reading’s town centre, the biggest commercial centre in the Thames Valley. We identified that the property was under-rented for the town centre at only £21.07 per sq ft, with headline reaching £38.00 per sq ft, offering extremely strong reversionary potential. The property has an unusually strong parking provision for the town centre, with a ratio of 1:337 psf, as well as a garden frontage onto the river Thames. 

The upcoming rent review in December 2019 offers a strong prospect of significant rental uplift in the short term, while benefitting from good security of income for the remainder of the 11.1 year term, with limited future capital expenditure requirements.

 

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