BILFINGER GVA, acting on behalf of Regent Capital for a private property syndicate, has secured the investment sale of the Spectrum 8 Building, pictured, in Spectrum Business Park, Seaham.
Spectrum 8 comprises a detached 30,000sq.ft two-storey grade A office building – completed in 2008 – on a 2.26 acre site.
The building is fully let to Durham County Council on a full repairing and insuring lease, without break option from April 1, 2010, with a 15-year unexpired term at a rental of £358,620 per annum. This equates to £11.95 per square foot.
The property is occupied by the council as its administrative offices for the Seaham and Easington area (former Easington District Council).
A sale to Greenridge was secured at the asking price of £4.75m, which equates to a net initial yield of 7.09 per cent, after deduction of purchaser’s costs. DTZ acted on behalf of the purchaser.
“This successful transaction reflects the strength of the investment market and the active demand to acquire well located out-of-town offices with secure income streams,” said Simon Beanland, senior director and head of investment, Bilfinger GVA Newcastle.
“This building is an ideal match to our investment rationale – a solid building let to a blue-chip covenant with a long-term income stream. We are currently focussed on sourcing similar deals and are confident of the opportunities that the UK regional markets continue to present.”
Robert Patterson, partner at Sanderson Weatherall, Spectrum Business Park’s marketing agent, said: “We are delighted to see a deal of this value secured, which is testament to the impressive regeneration of Seaham and the excellent quality of office space available at Spectrum Business Park.”
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