Corporate | 22 July 2013 08:27
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PATRIZIA Immobilien AG / Key word(s): Real Estate/Contract
Acquisition of UK Business Park, IQ Winnersh
London/Augsburg, July 22, 2013. PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) together with its joint venture partner Oaktree Capital Management, L.P. (‘Oaktree’, and together, the ‘JV’), announces the acquisition of IQ Winnersh for EUR 285 million (GBP 245 million). The acquisition has been undertaken through a new joint venture company, Winnersh Holdings LP, and represents PATRIZIA UK’s fourth UK real estate asset purchase with funds or accounts managed by Oaktree in the past four months. IQ Winnersh is a 1.27 million sq. ft. (c. 118,200 sqm) park comprising a variety of uses, including office (new-build and second generation), multi-let industrial and warehouse, data centre and retail. The park has been developed over a period of 40 years and benefits from an on-site train station, four-star hotel, conference space and retail amenities, as well as being strategically located at junction 10 of the M4, near Reading, which is one of the main motorways into London and Heathrow Airport. The park is expected to benefit from Crossrail, a new East to West railway line across London and the suburbs to be completed by 2015. With a vacancy rate of 9.7 per cent, a weighted average unexpired lease term of 8.3 years, and low average rents, the JV believes there are opportunities to capitalize on the improving occupier sentiment currently being witnessed in the UK through letting up vacant space, re-gearing leases and financing the property soon after acquisition. Furthermore, the sale also includes four hectares of adjacent development land, thereby providing significant opportunities to add value over the long term through developing new space to expand the tenant mix. The park currently offers tenants accommodation for a range of different uses and sizes, ensuring diversification of businesses operating on the park. This flexibility also provides an environment in which companies can comfortably expand and contract within the park, depending on the space requirements of their businesses, over the long term. Commenting on the transaction Rob Brook of PATRIZIA Immobilien AG said: ‘This transaction meets the joint venture’s investment strategy of acquiring good quality assets in attractive segments of the market which offer value-add opportunities. IQ Winnersh is a high quality and significant asset located in the most dynamic market outside of Central London. Furthermore, we believe we are entering a point in the cycle where rental growth appears to be gaining momentum with an increase in occupier activity, and so believe we can benefit from the property’s existing vacancy and re-gear opportunities to drive future income.’ David Snelgrove of Oaktree, added: ‘IQ Winnersh is a unique business park with excellent transport links in one of the most economically vibrant sub-markets of the UK outside of Central London. The park provides current and prospective occupiers with a broad range of space options which are complemented by a variety of high quality amenities. We are excited by the longer term potential of this asset.’
About PATRIZIA Immobilien AG
PATRIZIA Immobilien AG
Listing: Frankfurt Official Market (Prime Standard)
Contact
End of Corporate News 22.07.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | PATRIZIA Immobilien AG | |
| Fuggerstraße 26 | ||
| 86150 Augsburg | ||
| Germany | ||
| Phone: | +49 (0)821 – 509 10-000 | |
| Fax: | +49 (0)821 – 509 10-999 | |
| E-mail: | investor.relations@patrizia.ag | |
| Internet: | www.patrizia.ag | |
| ISIN: | DE000PAT1AG3 | |
| WKN: | PAT1AG | |
| Indices: | SDAX | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart | |
| End of News | DGAP News-Service |
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