Fprop buys Borehamwood campus for £62.5m

By Paul Norman - Friday, January 05, 2018 15:00

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Fprop has bought Imperial Place, a 220,000 sq ft office campus in Borehamwood in Hertfordshire from Cromwell Property Group for circa £62.5m, CoStar News can reveal.

Market sources this week said the sale had completed at a circa a 6.4% yield. 

Imperial Place is a 222,450 sq ft campus-style office complex in Borehamwood, just north of London, which Valad Europe, part of Cromwell, bought in 2014 for £39.3m, reflecting a net initial yield of 8%, as part of a wider £100m portfolio bought from Columbus Capital Management.

Following completion, the asset’s vacancy rate was reduced by 2.5% with Artsana, the manufacturer and distributor of baby and health and beauty care products, signing a new 10 year lease on 5,713 sq ft of space. Imperial Place is also home to Pizza Hut, Taylor Wimpey, Signet Trading, Just Eat, Pierre Fabre and Dorel UK.

In 2016  Alstom took a total of 14,425 sq ft of office space on two 10-year leases split between part 1st floor and the whole 3rd floor for a rent of £22 per sq ft.

The four-storey Grade A building has 880 car parking spaces which is located in the town centre adjacent to the famous Elstree Film Studios.

Knight Frank advised Fprop while Gerald Eve advised Cromwell.

John Rodgers, partner at Gerald Eve said: “We were delighted to be involved with this landmark office complex over a number of years, advising on the initial acquisition in 2014 through to a successful sales process to F Prop. A deep understanding of the asset and market in which it sits helped produce a competitive sales process and demonstrates the depth of investor appetite for the right product."

Charles Boyes, South East Offices at Gerald Eve, said: “The success of the sale shows the structural impact permitted development is having in certain Greater London sub-markets. Office investments in such locations are now highly sought after by investors looking for enhanced rental growth characteristics, underpinned by longer term residential uses.”


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