Savills, on behalf of Three Peaks Nottingham Ltd, has sold 1 Mere Way on Ruddington Business Park to Corum XL for £6.275 million, reflecting a net initial yield of 6.72%.
Set across 2.6 acres (1.05 hectares) and comprising a 28,696 sq ft (2,666 sq m) headquarters building, the office space is let to Ideagen PLC on a new 15-year lease.
Occupying a prominent position at the entrance to Ruddington Fields Business Park, the premier development is located just six miles to the south of Nottingham providing access to the A60. Other occupiers include Vision Express, EMTEC Colleges, Quotient Clinical, Greene Tweed, Experian, Ergo, NEC, Styles & Wood and Capita.
Victor Ktori, head of office at Savills Nottingham, comments: “We are very pleased to have secured the sale of this headquarters office investment. Notwithstanding the momentary hiatus in the market during the Covid-19 lockdown, we felt confident that Nottingham’s fundamentals combined with the long dated income, which remains rare, would generate strong interest from both domestic and overseas investors looking to acquire assets that generate strong returns and also provide future re-positioning potential.
“This is the second landmark office investment we have sold during this period and are in the process of shortly completing a third. Essentially, it has provided an opportunity for purchasers to take advantage of the relative inactivity and we are already seeing a positive yield shift, even in the last two weeks.”
Michael Johal , Director of Three Peaks Nottingham Ltd, adds: “We are very pleased to have concluded this sale swiftly, even within a climate of uncertainty, as well as concluding the lease term during the Covid-19 disruption. This underscores the fact there is demand for property investment and a good outlook for well-located assets.”
A spokesperson from LSH also commented: “We are very pleased to have secured this off-market opportunity for the Corum XL fund, managed by Corum Asset Management Performance, who demonstrated their professional approach throughout.”
LSH represented Corum XL and New West acted as joint agent with Savills.