Lateral seals deal for two neighbouring Cambridge offices

Lateral, backed by HIG Capital, has bought two buildings in Cambridge for a life sciences makeover. The deal comes after talks with the Noé Group’s real estate investment arm, Capreon, fell through in 2023.  The facilities, known as Radio House and St Andrew’s House, have changed hands from Orchard Street Investment Management. Alpha Property Lending has provided £26.6m acquisition and capex loan to the buyers. The two-building complex, measuring 85,488 sq ft, has been built to suit technology and innovation-led companies. The facilities are multi-let to a range of tech firms, including Sentec, Agile Analog, Micro Focus Software, Ubisense, Alpha CRC, Power Integrations and Innovia Technology, with 6,500 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 just shy of £30 per sq ft. The jv is looking to turn the offices into innovation and life sciences space to capitalise on the supply and demand imbalance in the Cambridge real estate market. Radio House, which measures 43,403 sq ft, was already refurbished in 2018 to add dry lab space into the building and improve its environmental credentials to achieve a BREEAM Excellent rating. Both buildings have the potential for the addition of wet lab space. Jérôme Fouillé, managing director at HIG Realty in Europe, said: “We are excited to acquire Radio House and St. Andrew’s House, which aligns perfectly with our strategy to provide high-specification real estate to research-led companies and organisations in key locations in the UK.” JLL and Knight Frank advised on the deal. Image © Knight Frank