Sidra Capital, an alternative asset management firm headquartered in Saudi Arabia, has announced the acquisition of London Square, a multi-let office building in Guildford, UK for just over 40 million pounds ($51 million) from M&G Real Estate. The property spans 133,290 square feet and consists of three buildings and 313 parking spaces.
London Square is an income-producing value-add UK office property offering an attractive current return and a strong IRR potential. The property consists of three Grade A office buildings and a standalone nursery in an attractive 4.5-acre campus setting within walking distance of Guildford town center. Two of the office buildings were subject to a comprehensive refurbishment, providing high-quality office accommodation. The property is 81 percent leased to a roster of strong tenants, including leading law firms Speechly’s and Clyde and Co. and services firms WSP, RSM and Grenke.
The aim of the investment is to enhance the quality of the asset to ensure it remains attractive to occupiers while generating a high cash yield for investors. It also has excellent road and rail transport links, easy access to the motorway network, Gatwick/Heathrow airports, and Central London — a 40-minute train ride.
Commenting on the acquisition, Hani Baothman, chairman of Sidra Capital, said: “We are delighted to have completed the acquisition of this asset at an attractive price. The property provides an exceptionally high-quality office environment catering to the needs of forward-looking occupiers while the site value is underpinned by alternative use given the surrounding residential area and proximity to Guildford town center. Our plan is to continue to invest in the property to ensure it provides the highest quality space in Guildford.”
Sidra Capital has an extensive UK portfolio and completed the acquisition of The Bower and a fund managed by Clearbell Capital for around 74 million pounds in October last year.