Schroders Real Estate has revealed the acquisition of St James House to The Regional Office Property Unit Trust, in a deal worth £21.8 million.

Situated at St James' Square near Waitrose, the 81,731 sq ft freehold office has four floors including a basement and is multi-let to seven tenants, at an average rent of £23 per sq ft.

Businesses occupying the building include the Office for Nuclear Regulation, Barnett Waddingham, Brewin Dolphin, BPE Solicitors and Crowe LLP.

Tom Newman, fund manager at Schroder Real Estate, said: "Cheltenham has been a target location for ROPUT as a result of its low-Grade A supply, highly skilled workforce and a growing cyber security sector due to the influence of GCHQ.

"St James House offers secure income with good fundamentals that should support future tenant demand and rental growth. On completion ROPUT will have 17 regional offices offering good fundamentals at affordable rents in strong and undersupplied regional cities and towns."

CBRE acted for Schroder Real Estate and Savills for the vendor AEGON.