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A wholly-owned unit of Frasers Centrepoint Limited (FCL) has agreed to buy four business parks in the UK for a total of about £686 million (S$1.2 billion), said an SGX filing on Monday (11 September).
The buyer is Frasers Property International, while the vendor consists of subsidiaries of a fund or account managed by Oaktree Capital Management.
The properties being acquired include the 255,000 sq ft Watchmoor Park in Camberley, the 815,000 sq ft Chineham Park in Basingstoke, the 1.5 million sq ft Winnersh Triangle in Reading and the 2.3 million sq ft Hillington Park in Glasgow (pictured). The first property is a business park, while the other three are mixed-use business parks.
Frasers Property has also agreed to purchase Maxis, a project comprising two office buildings with an area of 199,000 sq ft in Bracknell. But this proposed acquisition is subject to certain conditions pertaining to net operating yield and the development achieving a minimum occupancy of 95 percent.
“The properties are highly defensive with growth prospects. From a tenancy perspective, the rental income from them are underpinned by long term leases to a diversified base of over 400 tenants,” said FCL Group CEO Panote Sirivadhanabhakdi.
“The properties have a long WALE of 5.9 years and tenants include reputable large companies such as BMC Software, Ericsson, Harris Systems, Intel, Level 3 Communications and Novartis. In addition, with over 1.4 million sq ft of development built area, there is opportunity to increase built area by almost 30 percent in the future.”
Upon completion of the deals, FCL will own around S$4.2 billion worth of properties in the in the UK and Europe, while commercial space will account for about 30 percent in FCL’s S$26.8 billion global portfolio.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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