Reading: Oxford Properties closes £563m Green Park sale to Mapletree
Oxford Properties Group has completed its 100% sale of Green Park to Singapore investor Mapletree Investments for around £563 million, crystallising a notable return on investment following a highly-successful five-year leasing and asset management programme.
Oxford will continue to act as asset manager on behalf of the new owner until year end 2016.
Oxford bought the 1.3m sq ft park from Prupim in November 2011 for £400m. At the time the park was around 90% let.
The group then deliberately took the park down to 47% let after completing a lease surrender with US IT giant Cisco on 517,000 sq ft of unoccupied property in 2012.
The agreement was reached across five office buildings, including 350 Longwater Aveue, 400 South Oak Way and 450 South Oak Way, in return for a substantial pre-payment of Cisco’s obligations.
The deal gave Oxford full control of the assets enabling it to press on with leasing at the familiar landmark scheme fronting the M4.
It subsequently signed Chinese telecoms giant Huawei for the 139,239 sq ft 300 South Oak Way and has continued to sign a range of smaller lettings while remodelling buildings including 450 South Oak Way which PC'd in September of last year.
Pepsico leased all of the 105,000 sq ft 450 South Oak Way meaning the park was circa 75% leased with rents for the smaller space having moved from around £25 per sq ft at the time of Oxford’s purchase to circa £33 per sq ft. The smaller deals have tended to be expansionary ones for existing tenants.
At the beginning of this year occupiers signed up to a further 215,000 sq ft, taking the occupancy at the business park to over 92%.
Significant new lettings to Thales and Bayer for 111,064 sq ft and 80,000 sq ft respectively were agreed, together with deals to expand the offices of existing occupiers Proofpoint and Datto.
Singaporean REIT Mapletree made a particular name for itself as an active buyer of UK regional assets last year with a £360m triple-swoop on three prime office buildings in Aberdeen, Bristol and Manchester.
In total, Oxford has executed over 750,000 sq ft of leasing activity, bringing occupancy to 93%. Paul Brundage, executive vice president and senior managing director, Oxford, said: “Green Park is an exceptional asset and we are proud of the work the Oxford asset management team has done in improving occupancy, increasing rental rates and creating an engaging occupier experience.”
Oxford was represented by Eastdil Secured, Cushman & Wakefield and DLA Piper. Campbell Gordon, Cushman & Wakefield act on behalf of Oxford Properties at Green Park as leasing agents.
Credit: CoStar
