Frasers Centrepoint acquires four UK business parks for $1.2b

It is part of an overseas expansion plan.

Frasers Centrepoint Limited (FCL) acquired four business parks in the United Kingdom (UK) for $1.2b.

The parks consist of 4.9 million sqft. of built area across four freehold park assets, namely, Winnersh Triangle, Reading; Chineham Park, Basingstoke; Watchmoor Park, Camberley; and Hillington Park, Glasgow.

FCL also proposed to acquire another business park, Maxis, Bracknell, subject to conditions relating to net operating yield and an occupancy of at least 95%.

FCL said the move is part of its strategy to grow overseas.

After the acquisition, FCL will have over $4.2b worth of UK assets in Europe, whilst the proportion of commercial properties will move up to 30% of assets.

FCL group chief executive officer Panote Sirivadhanabhakdi also said the properties have a diversified base of over 400 tenants, including companies like BMC Software, Ericsson, Harris Systems, and Intel.

He added, "Favourable supply-demand dynamics, driven by (i) desire for integrated lifestyle and community based business space with a live-work-play proposition; (ii) demand for cost-efficient alternatives to city centre locations; and (iii) historical low vacancies, make the UK business park sector a very attractive market to further extend our platform."