NG Chartered Surveyors has brought a prominent Leicester city centre office investment to market with a guide price of more than £2.25m.
Provincial House, at 37 New Walk, is a Grade II listed, multi-let office building extending to 27,966 sq ft and generating a current annual income of £225,247.
The freehold investment is being marketed by NG Chartered Surveyors at a net initial yield of 9.41%, with the potential to increase rental income to an estimated £352,000 per annum through a range of asset management opportunities. That would take the reversionary yield to 14.75%.
Provincial House occupies a prominent position on New Walk in the heart of Leicester’s central business district, around a five-minute walk from Leicester railway station.
The building provides office accommodation across the ground and three upper floors, arranged around a central service core, with 29 on-site parking spaces.
Existing occupiers include Nelsons Solicitors, Legacy Wills & Estate Planning, Exeid and Crosscut Media, while vacant accommodation provides an incoming owner with opportunities to drive further rental income.
Charlotte Steggles, Director at NG Chartered Surveyors, said: “Provincial House represents a compelling opportunity to acquire a substantial freehold investment in one of Leicester city centre’s most established professional locations.
“The headline yield is attractive in its own right, but what makes the opportunity particularly interesting is the scope for an investor to actively improve the income profile.
“With an ERV of around £352,000 per annum, there is a clear route to adding value through letting the vacant accommodation alongside future lease renewals and re-gearing opportunities.”
The Grade II listed building sits within the New Walk Conservation Area and combines a Regency-style frontage with predominantly open-plan office accommodation.
Thomas Szymkiw, Head of Agency at NG Chartered Surveyors, added: “New Walk remains one of Leicester’s best-known office locations, offering the unusual combination of a relatively tranquil setting while being right in the city centre.
“Provincial House also benefits from its proximity to the railway station and the availability of 29 on-site parking spaces, which remains an important consideration for occupiers.
“For investors looking beyond passive income towards an asset where there is genuine potential to enhance returns, we believe this presents a very interesting proposition.”
Offers are invited in excess of £2.25m, reflecting a net initial yield of 9.41%, allowing for purchaser’s costs of 6.33%.
