BAM Properties has sold its commercial property development at Chiswick Green in West London to the M&G Property Portfolio for £47.7m. (The prime yield for the secured income at Chiswick Green is 6.3%.
BAM Properties recommenced the development of the six-storey Grade A BREEAM Excellent building in the spring of 2010 and was the first developer to resume speculative development in the West London market following the economic decline in 2008.
Shortly after completion BAM let 82% of the building (66,500sq ft2) to Viasat, the Swedish communications giant, shortly after the building completed last spring at a rent £39 per sq ft on a lease for 15 years.
Clwyd Roberts, Development Director of BAM Properties, said. ‘Chiswick Green is the latest successful example of our strategy of developing highly sustainable buildings in prime locations. We based our decision to re-enter the market in 2010 on a careful assessment that there would be demand for well-let, high quality investment stock and our judgement has proved correct.
‘The project a great example of our BAM’s integrated approach, which collaboratively harnesses BAM’s development, design, and construction expertise, to create the type of sustainable building that appeals to leading occupiers and investors.’
Fiona Rowley, Manager of the M&G Property Portfolio, added: “This acquisition furthers the Fund’s strategy to invest in core office locations that reflect rental growth opportunities going forward. The imbalance of supply and demand dynamics within the micro-location coupled with the modern flexible BREEAM Excellent space make this an exciting opportunity whilst providing the Fund with a strong income profile going forward.”
Cushman & Wakefield advised BAM Properties.
The M&G Property Portfolio is managed by Fiona Rowley and Justin Upton of PRUPIM, the real estate fund management arm of M&G Investments