London and Stamford buys another office building

Property group London and Stamford Property has bought its second office property in the South East of England in as many weeks, having snapped up a building in Marlow.

London & Stamford is paying £50.15m to Avestus for the Marlow International building, reflecting an initial yield of 8.9%.

The property is a Grade A office building comprising 231,016 square feet of space and was comprehensively refurbished in 2000. It is located just off the junction of the A404 in Buckinghamshire and is three miles from the M40 and eight miles from the M4.

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The building is let in its entirety to Allergan, Veolia Water Solutions and Dun & Bradstreet for a weighted average unexpired term of seven years.

It is anticipated that leverage will be applied to this asset in a cross-collateralised arrangement with Unilever House, the building in Leatherhead which London & Stamford bought last week. The cash yield on the combined portfolio will then be 11.2%.

"These deals when combined with our acquisition of Moore House on 22nd June 2012, complete c.£260 million of the potential investments I advised on in my statement at our year end results," revealed Raymond Mould, chairman of London & Stamford.

JH