British Land invests in Cambridge’s science and innovation sector
Client
British Land Plc
Size
8.25 acres
Value
£75.145m
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One of the UK’s largest property companies sought to increase its exposure to the technology community by acquiring a significant science park asset in a prime location.
Investing in innovation sectors and campuses is a core part of our client's business strategy so when the opportunity to purchase Peterhouse Technology Park was identified, we advised them throughout the acquisition process.
We drew upon our in-depth knowledge of the science and technology sector to advise them on the investment and presented comprehensive data to demonstrate the potential of the site, in addition to rental forecasts and future potential performance.
The site forms a core part of Cambridge’s science community and is the HQ for technology company, ARM. The four buildings (totalling almost 140,000 sq ft) are fully let to ARM with a weighted, unexpired lease term of 11 years and 10.1 years to breaks, generating a current total net income of £3.33m p/a, presenting attractive reversionary potential. British Land acquired the asset for £75.145m, reflecting a net initial yield of 4.15%.
The asset is held long leasehold from Peterhouse College, Cambridge, freeholder of the park with whom we engaged during the process.
British Land’s investment portfolio now includes a world-class science and technology asset. This acquisition secures exposure to the high growth office and laboratory sector in Cambridge and ARM, a leading Cambridge technology company.
We enjoyed working with Bidwells due to their significant expertise in the science and innovation sector within Cambridge and further afield. This acquisition aligns with our company strategy of buying well located innovation real estate in the golden triangle. We look forward to continuing our ongoing relationship with the Bidwells team.”
