Cambridge-based Howard Property Group and construction services and property development company, Osborne, have formed a joint venture to purchase Mount Pleasant House in Cambridge from Universities Superannuation Scheme (USS) for £10.665m. This reflects a net initial yield of 6.56% and capital value per sq ft of £256.
The property comprises a 42,000 sq ft multi-let office building on a 1.4 acre site north of Cambridge city centre. The building is currently let to 9 tenants and generates a short term income of approximately £741,000 per annum. The property provides a number of asset management opportunities.
William Jewson, Development Director at Howard Property Group commented: “This acquisition represents a significant investment in the Cambridge market for the Howard Property Group. It fits exactly with the Group’s investment strategy of identifying core opportunities that provide short-term income with exciting development potential in the medium term. Our team aims to be a long term stakeholder in Cambridge’s future success and believe this acquisition represents an important step towards achieving this objective.”
Commenting on the acquisition, David Sarson, Managing Director for Osborne Development, said: “This is a very exciting deal for Osborne. The acquisition of Mount Pleasant House in Cambridge is part of our strategy of investing in development opportunities in university towns.”
Howard Osborne is the first Joint Venture between these two long standing family owned businesses. Geoffrey Osborne Ltd is a highly experienced developer and contractor in the South East and is a natural partner for the Howard Property Group, who enjoy a number of strategic long-standing local relationships.
USS was represented by DTZ and Bidwells. Howard Osborne LLP was represented by Juniper Real Estate.
Both HPG and Bidwells are founder members of the newly formed Cambridge Ahead – A business and academic member group dedicated, to the successful growth of Cambridge and its region in the long term.
