Legal & General Property acquires Lotus Park in Staines

Legal & General Property announces that it has acquired the freehold interest of Lotus Park, The Causeway, Staines from McKay Securities Plc, for £24.23 million, representing a net initial yield of 8.55%.

Purchased on behalf of the Managed Fund, the park comprises four two-storey office buildings and provides 79,000 sq ft of prime office accommodation. Occupying a 3.8 acre site, it also includes parking for approximately 316 cars. The buildings are fully let to three tenants, including IBM, Dow Chemical Co and SFDC UK.

Charlie Walker, Senior Fund Manager, commented: "Providing good quality defensive stock in the short term and significant asset management opportunities over the medium to long term, this purchase complements the Fund's existing portfolio and will enable it to proactively add value in the future at a time when the market is forecast to deliver strong rental growth.

"Having been active net investors over the past nine months, we have really noticed a step change since September in the number of parties eyeing up the same potential investment opportunities under £30m. The key to securing assets remains the ability to act quickly and we successfully closed this deal in just nine days."

Lotus Park is situated off The Causeway (A308), the principal office location in Staines, and within close proximity to the town centre and central railway station. Staines is one of the key office centres in the western corridor, located within the M25, approximately 17 miles south-west of Central London.

Savills advised LGP on the acquisition of Lotus Park and Vail Williams acted for the vendor, McKay Securities.