Sovereign House

Vastern Road
Reading

Acquired in collaboration with a foreign private high net worth individual, this acquisition marks their first commercial property investment in the UK.

The property is multi-let with all tenants expressing a desire to remain within the premises.

BHP is currently undertaking the evaluation of a design led refurbishment for the reception area and parts of the office building, whilst at the same time re-negotiating the commercial terms with the tenants.

Its position and prominence will significantly improve once the £800 million refurbishment of the railway station is complete (Autumn 2013), designating the north side of the railway tracks (Vastern Road) as the principal access to the station.

www.sovereignreading.com

STRENGTHS

  • Immediately adjacent to the railway station
  • All the tenants confirmed an intention to remain in occupation
  • Likely rental growth due to the improved pitch as a result of station improvements

OPPORTUNITIES

  • To improve the rental value through limited refurbishment of the common parts
  • To re-gear leases with the tenants all of whom have indicated an intention to stay

WEAKNESSES

  • Multi-let with varying tenants' break clauses and expiries
  • M&E needed some renewal and recalibration
  • Less than ideal car parking provision

Threats

  • Occupiers vacate at expiry or through effecting their tenants' break clauses
  • Void risk with existing vacant 2F suite
  • Delays to completion of the Station improvements road works on Vastern Road impair marketing of the vacant suite