Arlington Business park freehold acquired for £129 million
CapitaLand has entered into an agreement to acquire Arlington Business Park, a prime freehold business park in Theale, Reading. The acquisition will expand CapitaLand’s assets under management (AUM) in Europe to $4.8 billion, thus further strengthening the Group’s investment portfolio in the developed markets.
The business park comprises of 11 Grade A office buildings, which total approximately 367,000 sq ft of net lettable area.
Conveniently located close to the M4 motorway, the business park boasts excellent connectivity for tenants, with Heathrow Airport only a 30-minute drive and Theale train station a five-minute walk, offering direct access to central London within 40 minutes. The Crossrail train line, which is due to open in 2021, will further improve connectivity, reducing travelling time into Central London.
“The portfolio of 11 income-generating prime freehold business park buildings offers CapitaLand meaningful scale in the UK’s business park and regional office sector. With increased clarity post Brexit, the acquisition is timely as general business sentiment has improved. Demand for office space in the UK persists and prime office rental rates in key UK cities, including Reading, are also expected to grow between 1% and 5% over the next two years4. Arlington Business Park is well-positioned to enjoy rental upside from vacancies and reversions. The UK offers strong fundamentals such as a resilient economy and transparency, and we look forward to expanding our presence in the UK and Europe.”
Mr Gerald Yong, Chief Executive Officer at CapitaLand International
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