The £100 million sale of One Forbury Place in Reading has been completed by Allsop.
The property consultant acted for Citigroup subsidiary Citi Private Bank and its private investor client in the acquisition of the 185,000 sq ft building from M&G.
The eight-storey building was let to SSE in 2015, which was the biggest Reading town centre letting for 25 years, but since the energy firm’s sale of part of its business to OVO Energy, 60,000 sq ft has become vacant. That space is being marketed by Rare Commercial Property and Cushman & Wakefield. The SSE lease runs until 2031.
Dale Johnstone, partner at Allsop, said: “As the UK office market continues its post-pandemic recovery, overseas investors feel more reassured about its trajectory and are eager to look beyond London in search of attractive yields.
“One Forbury Place is an asset of rare quality and exceptional location near Reading station, and its appeal will be further amplified with the opening of the Elizabeth Line later this month.
“As we’re seeing more overseas capital flow into the UK market, Allsop is well positioned to help investors identify income-producing opportunities across the country thanks to our network of contacts and in-depth understanding of the commercial real estate landscape.”
Jonathan Mannings, founder and director of Rare Commercial Property, said: “Despite Reading’s failed bid for city status, it remains the ‘capital of the Thames Valley’ and so there was little surprise that the investment attracted so much interest in the market – and was sold on outstanding terms.
“We welcome the arrival of Citigroup as the new owners of the building which introduces some much-needed competition into the mix at Forbury Place.
“With the appointment of our new joint agent, Cushman & Wakefield, we look forward to progressing the disposal of OVO’s 60,000 sq ft of high quality, fully fitted space, which represents possibly the best space currently available in central Reading.
“With its proximity to the station and excellent on site car parking, not to mention the amenity offered within the building, all of which is available on competitive terms, we expect this space to attract strong interest as the market regains momentum following the pandemic.”
M&G was advised by CBRE.
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