Kout Capital announces the completion of the sale of shares in Phase 1000, Cambourne Business Park, near Cambridge, United Kingdom on behalf of Middle Eastern investors. Sold at a price of £38.7 million providing an estimated net initial yield of 5.5% to ‘Life Science REIT’ through the sale of the special purpose vehicle that owns Cambourne Business Park. The investment has achieved an equity IRR in excess of 14.4% or 2.52x multiple for Kout Capital’s investors, net of all local costs and taxes.
Kout Capital’s clients acquired the 90% freehold interest in Scholar Property Holdings Limited via a joint venture partnership with Alpha Real Trust in 2011.
Cambourne Business Park comprises three modern buildings with over 100,000 sq. ft. of office and laboratory space. During the investment period, two of the three buildings were entirely refurbished to grade A standard and are let to high quality tenants. The property is complimented by its strategic location approximately eight miles west of Cambridge city centre, the United Kingdom’s main hub for technology and innovation R&D. Over the course of the investment period, a structured asset management strategy was followed to provide income whilst also maintaining and upgrading the asset’s institutional quality.