Bradda Capital has acquired a prime office building in Guildford town centre from Abrdn for £12.8 million.
The UK real estate investment adviser has acquired 29,345 sq ft, three-storey 31 Chertsey Street in a deal reflecting a net initial yield of 6.75 per cent.
The building was extensively refurbished by Bell Hammer in 2014 to a BREEAM rating of Very Good and an EPC B. It is let to BDO, Penningtons Manches Cooper and Eagle Eye Solutions, at an average rent of £31.39 per sq ft with a weighted average unexpired lease term of 3.3 years.
David Phillips, managing director of Bradda Capital, said: “31 Chertsey Street is a great addition to the fund and reflects our confidence in the long-term future of offices.
“It is a Grade A building with secure income in a very strong location with a constrained land supply and a lack of high-quality office space. It is also future proofed with good sustainability credentials, which we expect to improve in due course in line with our investment strategy.”
Bradda was advised by Knight Frank and Abrdn was advised by Joiner Cummings.
The acquisition will be refinanced within an existing £28.3m arrangement with Barclays Bank.
Robin Nixon, relationship director at Barclays Corporate Banking, said: “This is the sixth transaction we have financed with Bradda Capital and are pleased to be supporting the new fund’s portfolio whilst also underlining our ongoing commitment to the UK real estate sector.”
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