Chester and CarVal sell 2 Longwalk at Stockley Park

Hot on the heels of letting the majority of the 48,550 sq ft building at 2 Longwalk to a subsidiary of Suntory Beverage and Food in October 2013, the joint venture between CarVal Investors and Chester Properties has now sold the asset to Standard Life. The transaction was by way of a corporate sale at a price of £16.7m, representing some £345 psf. Lucozade Ribena Suntory Limited has a 10 year lease from October 2013 with 13 months' rent free and a break at the fifth year. No rental or other guarantees were given on the vacant space of 10,770 sq ft and the price represents a net initial yield of 6.2% and an equivalent yield of 6.9%.

CarVal and Chester acquired the property in June 2012 with vacant possession and carried out a comprehensive refurbishment. CarVal Investors and Chester Properties own three additional office properties in Stockley Park totaling around 120,000 sq ft, and the majority of the space will be refurbished during the course of this year.

CarVal Investors and Chester Properties were advised by JLL and CBRE acted for Standard Life.