The long leasehold interest in a prime retail and office block in the centre of Cambridge has been sold by M&G Real Estate’s Life Fund to a Cambridge College freeholder for £32.43m.
St Andrews House is a substantial four-storey building at the junction of St Andrews Street and Emmanuel Street, directly opposite one of the main entrances to Grand Arcade and close to John Lewis.
Totalling almost 50,000 sq ft, it comprises 10 retail units beneath three floors of offices. Among the retail occupiers are NatWest Bank, HSBC, the Post Office and Santander, while the 12 office tenants include H&M, Malcolm Hollis, Manpower and Pearson. The long leasehold is for a term of 153 years, expiring in December 2107.
Prime Retail partner Bradley Maher, who jointly acted for the vendor, says: “The property presented an extremely rare opportunity to acquire a substantial mixed-use investment in the centre of Cambridge. We received an exceptional level of interest from a wide spectrum of investors, underlining the world-class reputation of Cambridge as an investment location.
“The sale agreed to the freeholder was an excellent result for both parties. M&G achieved a strong price for a property with sub-100 years remaining on their leasehold interest, whilst a Cambridge College has acquired direct control over a substantial site that adjoins the neighbouring college.”