Custodian REIT, a UK property investment company, has announced the purchase of Willow Court – a 22,545 sq ft office building on Minns Business Park.
Located one mile west of Oxford city centre, and adjacent to the A34, which connects the M4 and M40, other occupants of the business park include Oxford University Innovation, Barclays, Savills, Blake Morgan and Knights LLP.
The property comprises four floors let to RBS, Dehns, Charles Stanley, Oxentia and the Smith Institute with a weighted average unexpired lease term to first break or expiry of 4 years and an aggregate rent of £537,496 per annum, reflecting a net initial yield1 of 6.41%.
The agreed purchase price of £7.86 million was funded from the Company’s existing debt facilities, resulting in net gearing2 increasing to 24.4% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said: “We are delighted to have secured this office building in a proven location with a strong tenant line-up. Due to local development restrictions office supply in the vicinity has a history of high demand. The modern and recently refurbished property also has potential asset management opportunities to enhance value and extend its income profile.”
Carter Jonas’s Oxford team has been involved with the property for several years, providing a complete range of services from across its business, including, building consultancy advice, property management services and commercial agency support.
Jon Silversides, partner and head of commercial agency at Carter Jonas Oxford said: “Our long-term involvement with Willow Court has helped to ensure a strong occupier line-up, as well as a joined-up and proactive refurbishment and disposal strategy for our clients – ultimately resulting in a successful sale process.
“Whilst our relationship with this scheme is now at an end, we are particularly pleased to have demonstrated the benefits of a thorough and comprehensive service at Willow Court. In what remains a challenging trading environment, Oxford continues to attract considerable investment interest, for all the right reasons.”
1 Passing rent divided by valuation plus estimated purchaser’s costs.
2 Gross borrowings less cash (excluding tenant rental deposits and retentions) divided by last published property portfolio value.