Legal and General Investment Management Real Assets (LGIM Real Assets), on behalf of a client, has sold Elmbrook House, Sunbury on Thames to Spelthorne Borough Council for £7.16m, reflecting a net initial yield of 6.25%.
Elmbrook House is situated in a prime location just minutes away from the M3, and adjacent to Sunbury train station. The building has recently benefitted from an extensive refurbishment, carried out by LGIM Real Assets. Subsequent to this, the property has been pre-let to tenants Complete Cover Group on a new 10 year term.
Knight Frank’s Capital Markets team acted on behalf of LGIM Real Assets, while Cushman & Wakefield represented Spelthorne Borough Council.
This is the second disposal Knight Frank have completed for the Fund, having also recently sold Sandgate House, a prime long let office in Newcastle.
Tim Russell, Fund Manager at LGIM Real Assets, said: “The successful conclusion of our business plan for Elmbrook House, coupled with the subsequent sale, are testament to the expertise of our asset management team. These initiatives have delivered excellent returns for our client and Knight Frank Capital Market’s team delivered strong pricing on both sales.”
Henry Wyld, Associate in Knight Frank’s Capital Markets team commented: “The disposal of Sunbury House on behalf of LGIM Real Assets represents a second successful sale on their behalf in December. Both sales highlight the continued investor appetite for long secure income, and we expect this trend to continue into 2017.”