The Straits Trading Company’s subsidiary Straits Real Estate (SRE) is acquiring a freehold business park known as Bourne Business Park in Addlestone, Surrey, England, UK, for a total cash consideration of £76.7 million ($137.9 million).
The property is a prime business park with six standalone office buildings of a total of some 182,364 sq. ft. of net lettable area under a single freehold ownership.
It is located to established transport links and has a current occupancy rate of 96% to office tenants across various industries.
Most of the leases, which are home to the tenants’ UK, European, or global headquarters, has a weighted average unexpired lease term (WAULT) of 7.5 years.
On the rationale behind the acquisition, Desmond Tang, CEO of SRE says, “We see value in the property as it gives us a resilient stream of income via its stable existing leases. There is also value-add potential through refurbishment or redevelopment of part of the business park.”
“With lavish greenery affording a more natural social distancing structure and reduced commuting times, business parks as alternate office locations are expected to gain traction as occupiers consider the congestion and commuting requirements of being located in the city centre. Bourne Business Park is well-positioned to benefit from this trend due to its strong connectivity with ample on-site and nearby amenities,” Tang adds.
Shares in the Straits Trading Company closed flat at $1.54 on August 26.
