Global real estate investment company Kennedy Wilson and its equity partner have closed the acquisition of The Capitol Building, a 173,000 sq ft (16,070 m2) institutional quality office campus for $66.2 mln (€55 mln), reflecting a cap rate of 7.7%.
The partnership invested $29 mln of equity and Kennedy Wilson’s ownership interest is 51%.
The Capitol Building, in Bracknell, is part of the active Thames Valley submarket. It is 97% occupied by nine tenants across the tech and business service sectors. The four-storey building is set within a landscaped environment and offers a range of tenant amenities including meeting rooms, break-out areas, a canteen, bike storage and shower facilities.
‘This attractive acquisition just outside Greater London is the second acquisition with our joint venture partner of a prime suburban office campus, offering a high-income yield from a quality, well-let asset in a local submarket that we know very well,’ said Mike Pegler, head of UK for Kennedy Wilson. ‘The Thames Valley thrives on the tech and life sciences sectors, which are very well represented at The Capitol Building, and are contributing to the increasing demand we are seeing for low-rise and suburban office space.’