Purchase of Silbury House in Milton Keynes for £6 million
The RO is pleased to announce the purchase of Silbury House in Milton Keynes, at the heart of the “CaMkOx” Arc, for £6 million from Standard Life Investments Property Holdings Ltd. The modern office block of nearly 25,000 sq. ft. is located in an area set for rapid economic growth and in close proximity to both the station and thecentre:mk. The building is let to National Westminster Bank Plc until 2021 and has dedicated a car parking provision of 36 spaces.
This is the second major investment that RO have made in the region following the purchase of Potash Farm and Beachampton Business Park (“Potash”) for a total consideration of £2.65 million.
Over its history, the RO has always sought to identify regions which will benefit from macroeconomic factors, investing in a wide range of trading businesses and real estate development opportunities within those high-growth regions. The Oxford-Milton Keynes-Cambridge Arc, or ‘knowledge corridor’, as it is often referred to, is a vital driving force of economic growth in the UK and home to leading international universities and science and technology companies.
The Government has recognised the potential of this Corridor as a strategically important area to stimulate economic growth in the national interest. Key transport infrastructure projects are progressing, such as the new EastWest Rail line (‘Varsity Line’), which aims to connect Oxford and Cambridge by 2030 and the accelerated development of the Oxford-Milton Keynes-Cambridge Expressway. Housing forms the other key part of the strategy; with the aim to deliver one million new homes in the corridor by 2050, through settlement expansion and the development of up to five new towns or villages.
David Kershaw, Group Real Estate Director, RO commented:
Our interest in the Oxford-Milton Keynes-Cambridge Arc and the investments we have made epitomise our long history as an entrepreneurial trading business. The RO has always adopted a forward thinking approach to its investment strategy and we have a long and successful heritage of investing in local economies across the UK and across a diverse range of assets. We take a long-term view on ownership and are often prepared to hold assets for long periods, always adopting a proactive approach to asset management and frequently re-examining them for alternative use potential. We see great potential in the CaMkOx growth corridor.
On the Silbury House acquisition, the RO was advised by ACRE Capital Real Estate LLP and Osborne Clarke LLP, while Standard Life Investments Property Holdings (Aberdeen Standard Investments) was advised by Addleshaw Goddard LLP.