Royal London Asset Management Property has acquired Buildings 1000, 2000, and 9000 at Cambridge Research Park from Zurich Assurance (c/o Columbia Threadneedle Investments) for £44m.
Building 1000 provides 36,000 sq ft of Grade A office accommodation arranged over ground and the first floor, Building 9000 offers 64,000 sq ft of office and production space spread across two floors and the 20,500 sq ft Building 2000 is currently being comprehensively refurbished.
The deal has increased the company’s ownership of the park to 385,000 sq ft – 94% of the total park’s net internal area – after it completed the off-market purchase of the 30,200 sq ft Building 3000 earlier this year from the Property Income Trust for Charities – a fund managed by Swiss Life Asset Managers UK.
Will Hawking, head of life sciences at Royal London Asset Management Property, said: “The acquisitions of four prime buildings at Cambridge Research Park mark a strategic milestone in expanding our life sciences portfolio. This acquisition allows the team to consolidate our ownership and continue our strategy to deliver a wider campus masterplan to support the next phases of development.
“Establishing a majority ownership signifies our commitment to enhancing our presence in Cambridge Research Park, a pivotal location within the Golden Triangle, and underscores our dedication to a sustainable, tenant-centric investment approach. We anticipate offering top-tier lab space in the region for the foreseeable future, addressing the pressing need for premium facilities.”
Simon Martindale, fund director of the Property Income Trust for Charities, added: “The sale of Building 3000 concludes a successful investment for the Fund having originally acquired the property for £10.6m in December 2014. During its ownership, the fund manager has grown the rental income by 15%, through a combination of letting and rent review activity, whilst providing attractive and secure income to its charitable investor base. The sale crystallises an attractive IRR of 9% per annum over the hold period. The proceeds will be allocated for re-investment into new thematically aligned assets in line with current fund strategy.”
