Flexible workspace operator Mantle and its partner, TR Property Investment Trust, have purchased the ASC Building in Cambridge from BMW Pension Fund for £6,475,000, in a deal reflecting an initial net yield of 10.75%.
The 26,000 sq ft freehold office building occupies a strategic location at the gateway to the 650-acre Cambridge Airport estate, which forms part of the wider Cambridge East district.
The acquisition is part of Mantle’s wider expansion strategy and will bring the total number of centres the company operates to nine, with further locations currently being explored both within and beyond its existing geographic footprint.
Guy Baker, CEO of Mantle, said: “This strategic acquisition supports our continued expansion across the growth corridor and the wider South East. We are focused on identifying office assets with strong repositioning potential and enhancing them through our Mantle Space operating platform, creating vibrant, flexible environments where smaller businesses can thrive. We are currently exploring the introduction of additional equity to accelerate our growth ambitions and deliver strong, outperforming returns for our investors.”
George Gay, direct property fund manager at TR Property Investment Trust, added: “We have long been talking about the growing gulf between in-demand offices in the right locations, where rents continue to edge higher, and ‘the rest’, which have suffered as a result of remote working. This acquisition sits firmly on the right side of that divide. The building provides TR Property with secure income today, at the gateway to one of Cambridge’s most important regeneration areas, while also offering the opportunity to improve and reposition the space in future with an experienced local serviced office partner.”
Savills acted on behalf of Legal & General – administrator of the BMW Pension Fund – and Cheffins represented Mantle and TR Property Investment Trust.
