Aviva, advised by international real estate advisor Savills, has sold two office buildings on Manor Royal Business Park in Crawley, to the UK charity fund manager CCLA. Alexandra House and Compass House sold for a combined £10.15 million, representing a net initial yield of 8.42%.
Alexandra House is arranged over ground and first floor and provides a total of 25,071 sq ft (2,329 sq m) of office space. The property is single let to Sivantos Ltd (2A1) with the ground floor sub-let to Permasense Ltd (2A1) with an unexpired term of 6.4 years to expiry.
Compass House is comprised of 39,187 sq ft (3,640 sq m) of office space over ground and first floor. The building is multi-let to two tenants, SPX Flow Technology Crawley Ltd (3A1) & Rentokil Initial 1927 plc (5A1) and a part vacant floor, providing a WAULT to break of 2.5 years (6.4 years to expiry). Combined the two buildings provide a total income of £911,645 per annum.
James Vivian, associate director in the investment team at Savills, comments: “We are delighted to have disposed of Alexandra House and Compass House for our client. The current constraint on supply of regional office stock has put pressure on pricing as demand remains high. The two properties benefit from excellent transport links to both Gatwick Airport and London alongside strong covenants which ensured high levels of interest at marketing stage.”
Finn & Co advised CCLA.
