RO Real Estate, the UK commercial property investment and development company, has completed the acquisition of Discovery House, a 9,094 sq ft office building in Cambridge, for £2.85 million from Turnstone Estates.
Discovery House is located on Vision Park which is conveniently situated approximately three miles north of Cambridge city centre in the affluent village of Histon. Vision Park is a popular and established business park benefitting from close proximity to road and rail transportation links which further offer direct lines to Kings Cross and Liverpool Street.
The property is currently let to Internet Watch Foundation Limited on a 10 year lease (from 12 May 2014) at a rent of £203,625 a year, providing a net initial yield of 6.75% after purchaser costs.
This purchase is part of RO’s acquisition programme to invest in core income and value-add opportunities in the South East of England. RO Real Estate still has a significant amount of cash remaining to reinvest on lot sizes between £2-5 million, which offer the opportunity to add value through active asset management.
Richard Bourne, head of RO Real Estate, said: “There is high demand for this type of quality office space in Cambridge and a lack of supply means that there is the potential for future rental growth which will provide long-term secure income for our portfolio”.
RO Real Estate was advised by Hoddel Stotesbury Morgan. The vendor was advised by Finn and Company.
- Ends -For further information:
Richard Bourne, RO Real Estate
020 7025 1780
Faye Walters, Tavistock Communications
020 7920 3150
Notes to Editors:
RO Real Estate is a privately-owned company specialising in commercial property investment and development in the south east. It is the property division of the RO Group, which has majority interests in businesses involved in residential development, high-quality holiday lodge developments, domiciliary and specialist care services and the development of utility-scale solar energy projects.