Thames Water has sold its headquarters in Reading for £43m to Standard Life Investment Funds.
The 89, 059 sq ft building, which has been the HQ of Thames Water for seven years, has been let back to the company for a rent of £25 per sq ft, or £2m a year, on a 25 year lease.
The disposal is one of a series of sales conducted by Thames Water as a deliberate move to capitalise on its property assets whilst the market was strong. Last month it sold the 136,000 sq ft Aqua Portfolio in Reading for more than £27.5m to RO Developments. The sale comprised eight office buildings, including some in Swindon as well as other buildings in Reading.
Property director at Thames Water Margaret Grey said: ‘It is an extremely good time to sell as prices are high. We have set up these sales to gain investment value.’
Atisreal advised Standard Life on the sale. Strutt and Parker advised Thames Water.