AEW, one of the world’s leading real estate investment and asset managers, announces the acquisition, on behalf of the AEW UK Core Plus Property Fund (the “Fund”), of Northgate House on Valpy Street, Reading, for £8 million from a private property company.

The c. 66,000 sq ft town centre office building is arranged over basement, ground and seven upper floors and is occupied by a government department.

The acquisition forms part of AEW’s strategic site assembly, adding to its existing ownership of Tangent House and a public house to the rear of Northgate House, creating a highly prominent site in a location lending itself to multiple end uses.

Reading is an affluent commuter town in the heart of the Thames Valley in Berkshire, approximately 40 miles west of Central London. The town has a catchment population of 391,000 and is home to a number of multi-national firms. The property benefits from excellent transport links and is within walking distance of Reading Railway Station, providing access to mainline rail services and the Elizabeth Line, as well as the M4 (junctions 10, 11 and 12), which is located approximately two miles to the south.

Michael Shears, Executive Director at AEW, said: “The acquisition of Northgate House is in line with the Fund’s investment strategy of acquiring assets in core locations which are underpinned by long-term, strong capital values with optionality in viable end use. Northgate House sits on a gateway site in Reading town centre in a market with limited new delivery of Grade A office space.”

Tudor Real Estate represented AEW whilst ACRE Capital Real Estate & Hatch Real Estate acted for the vendor.