Bracknell: Palmer and SEDCO buy Cable & Wireless's home

Palmer Capital and SEDCO Capital have bought Cable & Wireless's home at Waterside House, Bracknell, for £35.2 million, reflecting a net initial yield of circa 5.65%.

Waterside House comprises 94,867 sq ft of recently-refurbished Grade A office accommodation with 338 car parking spaces on a 4.7 acre site.

The entire property is let to Cable & Wireless UK on a 30-year lease, which has 22.8 years left on the term with fixed minimum RPI rental uplifts every five years.

Rents are around £20.24 per sq ft.

The site sits within a prominent and established office location in Waterside Park, approximately one mile from Bracknell town centre and the circa £240m town centre regeneration project, due to complete in 2017.

The property has been acquired on behalf of clients of SEDCO Capital and Palmer Capital, who have significant capacity for similar projects.

Savills acted for the buyer. Knight Frank acted for Aviva.

Rupert Sheldon, fund manager at Palmer Capital, said: “Waterside House is a perfect match for the requirement, offering a secure income stream together with RPI rental uplifts therefore providing the prospect of both income and capital growth through the forthcoming market cycle.”

Charles Allen, acquisition director at Palmer Capital, said: “We believe with post-Brexit price adjustments, a favourable currency position, low cost of debt and with our investors having a long term view on the UK real estate market, Waterside House presents a compelling opportunity.”

Credit CoStar