Mike Clare’s Clarenco LLP has completed the acquisition of the Dreams Head Office at Knaves Beech, High Wycombe for £12.5m reflecting a net initial yield of 7.33%, subject to a leaseback to Dreams plc.

The property is let for a term of 20 years subject to a tenant break after 15 years. The freehold property comprises 48,578 sq ft of high spec office accommodation three floors and is located in a prominent position off the M40.

Guy Slocombe, property director for Clarenco, said: “We are delighted with our latest acquisition which provides the main Clarenco portfolio with long income from a strong covenant with whom we are both comfortable and familiar. It is very much a case of déjà vu for Mike who has bought the building for the second time, previously as chairman of Dreams.”

Clarenco has also completed the acquisition of 20 Wellcroft Road, Slough, from Royal London Asset Management for £1.2m, a net initial yield of 9.6%. The property is adjacent to 165 and 171 Bath Road which Clarenco acquired earlier this year.

Slocombe added: “We are very pleased to have completed this acquisition which is a strategic buy and adds a key element to the broader business plan for this location and which affirms our position in the Thames Valley market.”

These acquisitions take Clarenco’s investment in property to over £80m since the business was established last year.

Rapleys advised Dreams. Clarenco and Royal London were not represented.