ABPP sells UK Verizon headquarters for over £140M

Arlington Business Parks Partnership fund announced the sale of Verizon's 392,000 square-foot office headquarters at Reading International Business Park in the UK to RREEF.

The headquarters was sold for more than £140 million (USD $217.5 million ). The purchase includes phase I and II of Reading International Business Park and is leased by Verizon for the next ten years.

ABPP, managed by Goodman and operated by Legal & General Property, will continue to own the adjacent property for phase III of the park, which provides approximately 300,000 sq. ft. of office space.

Paul Edwards, director of LGP, said that despite uncertain economic times, there still remains a high demand in office developments and this particular sale will provide his agency with a balanced investment of quality assets for investors.

Jim Johnson, managing director of United Kingdom Business Parks, notices there are increasing commercial real estate investments into big pre-let properties.

"The [sale] proceeds will be recycled as part of an on-going strategy to enhance investor returns and help to facilitate future commercial development opportunities across our 8 million sq ft consented land bank on a pre-let basis." Johnson said. "We are currently on site with over £100 million of committed development to Centrica at Oxford Business Park, Greater Manchester Police at Manchester Central Park and other opportunities are expected to come forward in the near future."