Honeywell House sold to Runnymede Borough Council.
LGIM Real Assets has completed the sale of Honeywell House, in Bracknell town centre, to Runnymede Borough Council for £32.9 million, reflecting a net initial yield of 5.32%. Colliers International advised LGIM Real Assets on the deal.
Honeywell House comprises 72,604 sq ft of Grade A office space and is let with a strong tenant covenant to Honeywell Control Systems Limited. In 2019, LGIM Real Assets carried out extensive refurbishment of the asset as well as completing a re-gear with occupier Honeywell agreeing a new 11.5 year term. This transaction enabled Honeywell to have Bracknell as its new headquarters and delivered significant added value.
Matt Jarvis, Senior Fund Manager at LGIM Real Assets, said: “Having acquired the asset for £23.2 million in 2015, the sale of Honeywell House for £32.9 million marks the conclusion of a highly successful asset management programme, having re-geared the lease with Honeywell last year. We initiated the sale of this asset in January 2020 and are pleased at the price we have achieved. This sale demonstrates that despite a more challenging market, strong assets continue to generate interest.”
The purchase of Honeywell House by Runneymede Borough Council forms part of the local authority’s investment strategy to acquire high quality assets to secure income in order to fund an in-borough regeneration programme.
Thomas Farkas, associate director in the National Capital Markets team at Colliers International, added: “We received good levels of investor interest in Honeywell House due to the strong investment fundamentals including the recent refurbishment of the property and the unexpired lease term to Honeywell Control Systems. It is great to have completed this sale on behalf of our client despite the unexpected market conditions.”
TT&G advised Runnymede.