Capreon nears deal to buy Cambridge offices

The Noé Group’s real estate investment arm, Capreon, is close to sealing a deal to buy two neighbouring offices in Cambridge that were marketed with the potential to be turned into a life sciences hub. Orchard Street Investment Management had put Radio House and St Andrew’s House up for sale in March via Knight Frank with a price tag of £41m, reflecting a 5.86% net initial yield. It is understood that the asking price has been achieved. The investment manager previously acquired the offices, in 2011, from AXA Real Estate for £15.2m. If Capreon completes the deal and opts for a redevelopment into life sciences space, the move would mark its debut in the sector in the UK. The offices total 85,488 sq ft. Radio House, which measures 43,403 sq ft, was refurbished in 2018 to add dry lab space into the building and improve its environmental credentials to achieve a BREEAM Excellent rating. St Andrew’s House, which spans 42,085 sq ft, was marketed with potential to be fitted out as dry or wet labs. Both buildings are multi-let to a range of tech firms, including Sentec, Agile Analog, Micro Focus Software, Ubisense, Alpha CRC and Innovia Technology, with 20,835 sq ft of refurbished grade-A office space remaining vacant over both buildings. The investment is producing a combined income of £2.6m per year, representing a rent of £29.86 per sq ft. The acquisition also includes a 3.2-acre freehold site providing an opportunity for future development. All parties declined to comment. To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @Gre_Eve or @EGPropertyNews Discover which agents have been most active in Cambridge so far this year >> Photo from Knight Frank