Acquisition of £14m West London leisure scheme
May 30, 2014
Orchard Street Investment Management, the specialist commercial property investment manager, turned to Coffer Corporate Leisure for its acquisition of The Arena, Stockley Park. Purchased on behalf of one of its clients from Cube Real Estate for £13.31 million the deal represents a net initial yield of 6.2%. Stockley Park is one of UK's leading business parks, with 1.74 million sq ft of office space and approximately 7,000 workers. It is currently home to a range of blue chip companies including Marks and Spencer, GlaxoSmithKline, Apple (UK) Ltd, BP, Canon Toshiba and IMG. Located on the A408, with direct access to the M4 motorway, the park also benefits from its proximity to both, Heathrow airport (2 miles), and central London (15 miles). The Arena acts as the amenity hub for the 400 acres park, providing a variety of retail and leisure uses. Split over two floors the 65,824 sq ft purpose built space includes a Virgin Active health club, a Wetherspoons pub and additional units including Alexanders Wine Bar, Costa, Subway WH Smith and Greggs as well as two office units, together with a dedicated car park. It is also a retail and leisure destination for visitors from the surrounding areas. The property is currently let on 10 separate leases, with an average weighted unexpired lease term of 15.9 years to breaks. The park also has planning consent for an additional 22,380 sq ft of office space and there are also a number of longer term redevelopment opportunities subject to planning. Mark Sheehan, Managing Director of Coffer Corporate Leisure said: "Investments of this nature require specialist advice when it comes to the leisure element. Our unique understanding of the intricacies of the market enabled us to give detailed expert advice for the health club, restaurants and bars, providing Orchard Street with the specific information they needed to agree the purchase." Michael Elliott acted for Orchard Street. Cortex acted for the vendor.