Palace Capital has acquired prime piece of office real estate in Maidenhead town centre.
The London-based property investors have acquired 22 Market Street for £10.25 million with the investment generating an initial net annual yield of 6.83%.
The newly acquired property which has recently been comprehensively refurbished and is made up of 21,852 sq ft across three floors.
The building is fully let on a 10 year lease, from August 2021 to Techtronic Industries EMEA Ltd, a subsidiary of Hong Kong listed Techtronic Industries which has a market capitalisation of £26 billion, delivering an annual rent of £718,475.
Two small retail units on the ground floor bring the total net income from the asset to £747,374 per annum.
Neil Sinclair, Chief Executive of Palace Capital commented, "The Thames Valley is home to a host of global, blue chip companies and is a high demand location because of its accessibility; but despite this, in common with the trend we are seeing across the UK, office space availability has reduced significantly over recent years. Maidenhead is on track to benefit not only from the opening of the Elizabeth Line in 2022, with fast access to London Heathrow, the City, Canary Wharf & West End, but also the nearby Nicholson Quarter mixed use development, where construction is expected to commence in 2023.
"We are highly selective when identifying potential opportunities, particularly in this market where value is very difficult to access, and we are therefore very pleased to have been able to embark on recycling the disposal proceeds with this exciting investment."
The acquisition is in line with Palace Capital's investment strategy focused on good quality regional towns and city centres that are easily accessible and close to public transport, as well as the amenities that employees are keen to have near their place of work.
The purchase has been funded using both the existing NatWest revolving credit facility and proceeds from the Company's £30 million disposal strategy which has freed up funds from non-core assets.