London and South East REIT acquires office building in £15.5m deal

A UK REIT (real estate investment trust) specialising in the London and South East has announced its latest acquisition of a multi-let office building.

McKay Securities Plc, which specialises in the office, industrial and logistics markets, has acquired the Rivergate office building in Newbury Business Park in Berkshire.

Comprising 61,385 sq ft of office space over three floors and car parking totaling 323 spaces, the building is fully let to six occupiers including Capita Business Services, Cavendish Nuclear and Coffin Mew.

Simon Perkins, chief executive of McKay, commented: “Rivergate is one of the best office buildings in Newbury and has proved its appeal to occupiers with recent lettings all at, or in excess of, ten years.

“The building stands in good condition with limited capex requirements and will provide shareholders with a high yield and long income.

“Its low rental level relative to the wider market and the potential to add area and refurbish the ground floor provides plenty of scope for future growth, complementing other value enhancing opportunities across our wider portfolio.”