McKay Securities PLC, the only Real Estate Investment Trust specialising entirely in the South East and London office and industrial markets, has announced the freehold acquisition of Gainsborough House, Windsor for £6.85 million, from the Receivers.
Gainsborough House is an attractive 1980’s brick building located in central Windsor, close to both the railway stations and town centre amenities. It consists of 18,660 sq ft of good quality office space over ground and three upper floors, with 19 parking spaces within a self-contained ground floor car park.
The building is sub-let to Regus, the serviced office operator until December 2016 at a rent of £512,834 per annum (£27.48 per sq ft), providing an attractive initial yield of 7.1%.
Commenting on the purchase, Simon Perkins, Managing Director of McKay, said: “As a result of the constrained supply of good quality office buildings and the attraction of the town to occupiers, Windsor continues to be a resilient market with consistently low levels of vacant floor space. This attractive building is an excellent addition to our portfolio in a town that we have wanted representation in for some time.
Lease expiry at the end of 2016 gives us the potential to renew with the existing occupier, or implement a refurbishment to benefit from improving rental values within the town and the South East generally.
Since our £87 million Capital Raising in February, we have committed £54 million to the acquisition of five properties and portfolio refurbishments. With our existing loan facilities, we have further funds available for acquisitions, developments and refurbishments.
We continue to target and assess buildings with the scope to release income and capital gains from our development, refurbishment and management skills.”
Colliers International acted for McKay Securities PLC.