Acting on behalf of an institutional client, Aberdeen Asset Management paid £31.05m (€37 million) for the 100,000 sq ft KT1 office rental. The investment transaction will offer Aberdeen’s client a net initial yield of 6.85%.
Aberdeen Asset Management’s Ben Buckley-Sharp confirmed the acquisition saying: “We are delighted with the purchase of this Grade A headquarter[s] office building. It gives us exposure to long and secure income at a sensible rental level in a key West London suburb with excellent growth prospects.”
The deal comes two years after Rockspring Property Investment Managers acquired the South West London office building.
Located close to Kingston train station, the 97,679 sq ft office development has recently been renovated to a high standard. Rockspring successfully pre-let the property, which is composed of two interconnected buildings, to Saipem oil company.
The Milan-headquartered energy group agreed to 15-year lease of the Kingston office space. Kings and Conquest House were previously owned by Kuwait government’s St Martins Property Corporation. Forming part of a five asset deal, Kings & Conquest Houses were bought, in February 2011, by Rockspring’s UK Value Fund.
In the past, the KT1 office complex has been occupied by Surrey County Council. The Council has had long connection to the town and the Victorian-built County Hall on Penrhyn Road remains the Surrey CC's HQ Headquarters.