:
UK: Flex workspace operator Mantle and its partner TR Property Investment Trust have acquired the ASC Building in Cambridge.
The 26,000 square foot freehold office building occupies a strategic location at the gateway to the 650-acre Cambridge Airport estate. The wider site is now being transformed into the new Cambridge East district following its acquisition by Homes England, in partnership with The Hill Group.
The building was purchased from the BMW Pension Fund, which is administered by Legal & General, and was acquired for £6,475,000, reflecting an initial net yield of 10.75 per cent and a capital value of £247 per square foot.
The vendor, Marshall, has committed to ceasing airport operations by 2030, unlocking the opportunity for comprehensive redevelopment of the property. This transformation has been accelerated by the recent acquisition by Homes England and The Hill Group, who are progressing plans for the new Cambridge East district, set to be one of the UK’s largest urban extension projects.
The scheme is expected to deliver more than 10,000 homes and at least three million square feet of commercial space. It will also support around 9,000 jobs, and the creation of infrastructure, public amenities and green space.
The acquisition forms part of Mantle’s wider expansion strategy and will bring the total number of centres to nine, with further locations currently being explored both within and beyond its existing geographic footprint. Recent senior leadership appointments including Alexandra Livesey as fractional MD and Matthew Palmes, finance controller, have further strengthened the business’s capability to scale, supporting its ambition to expand its portfolio and brand presence over the coming years.
Guy Baker, CEO of Mantle, said: “This strategic acquisition supports our continued expansion across the Growth Corridor and the wider south-east. We are focused on identifying office assets with strong repositioning potential and enhancing them through our Mantle Space operating platform, creating vibrant, flexible environments where smaller businesses can thrive. We are currently exploring the introduction of additional equity to accelerate our growth ambitions and deliver strong, outperforming returns for our investors.”
George Gay, direct property fund manager at TR Property Investment Trust, commented: “We have long been talking about the growing gulf between in-demand offices in the right locations, where rents continue to edge higher, and ‘the rest’, which have suffered as a result of remote working. This acquisition sits firmly on the right side of that divide. The building provides TR Property with secure income today, at the gateway to one of Cambridge’s most important regeneration areas, while also offering the opportunity to improve and reposition the space in future with an experienced local serviced office partner.”
Savills acted on behalf of Legal and General and BMW Pension Fund, while Cheffins represented Mantle and TR Property Investment Trust PLC.
Highlights:
- Flex workspace operator Mantle and its partner TR Property Investment Trust have acquired the ASC Building in Cambridge
- The 26,000 square foot freehold office building occupies a strategic location at the gateway to the 650-acre Cambridge Airport estate
- The building was purchased from the BMW Pension Fund, which is administered by Legal & General, and was acquired for £6,475,000
