The Swindon head office of specialist distribution group Smiths News has been sold to a private equity real estate firm for just over £3m – a move reflecting the strong commercial property investment market in the town.
The freehold of the two-storey, 27,733 sq ft office building on the Kembrey Park office park has been acquired by Guildford-based Henley Investments from Kembrey Park owners and property fund managers Highcross. 
Smith News Trading, which distributes newspapers, magazines and books across the UK, has a lease for a further 11 years on the building having relocated there last year from Wakefield House, Pipers Way. The £3.017m purchase price provided a net initial yield of 11%.
Henley chief investment officer Jeff Morton said: “We are very pleased to have completed the purchase of this excellent investment. The attractive purchase price, in combination with a strong tenant covenant and a guaranteed rental uplift meets our investment strategy.”
He said the firm has more than £100m further to invest over the next few months.
Henley is a leading UK private equity real estate investor focusing on development, investment and asset management in the commercial, residential and debt property market with assets under management of £250m.
Henley was advised by Angermann Goddard & Loyd and Jones Lang LaSalle acted for Highcross.
Kembrey Park is one of Swindon’s prime office locations with occupiers such as Thames Water, Nokia Siemens Networks and Reader’s Digest.
