Schroders has acquired the Broadlands Business Campus in Horsham in an off-market deal from Praxis.
The fund manager’s subsidiary, Benchmark Capital, will initially occupy 20,000 sq ft of space at the scheme. It will look to grow its presence in the campus, which comprises two office buildings, as leases expire over time.
For Praxis, the disposal is the third in the past 12 months from the Project Garden portfolio that was acquired from Blackstone in 2015.
Praxis’ managing director Gary Roberts said: “Our intention at acquisition was always to dismantle this portfolio. These are all working assets, in different geographies, with different stories, and the only way to optimise value is to break it up and focus on adding value at a real estate level.
“Two years ago, we set about a programme of capital investment across the portfolio, with the intention of fundamentally improving occupancy and rental tone. Benchmarks’ decision to locate at Broadlands is testament to our asset and project management teams who have worked diligently to deliver an attractive product, appropriate to the local market.
“Benchmark made it clear that they saw Broadlands as their long term strategic home and given their growth aspirations a sale/purchase, rather than a letting, became the obvious solution; we are delighted to have been able to complete our leasing programme and exit simultaneously.”
The Broadlands was sold for £17.7m which would reflect a yield of 7.25% on the assumption that Benchmark Capital were paying the market rent.
Knight Frank acted for Schroders while Praxis was unrepresented.inv