Property investors are active in the South West property market with the latest transaction being the sale of Endurance House, Parkway Court, Plymouth.
The property was acquired by private clients of Vickery Holman for a purchase price of £870,000 which reflects a net initial yield of 8.48% allowing for normal purchaser’scosts at 5.8%.
The entire property is let to Solicitors Lyons Davidson for a term of 15 years expiring on 31 October 2024. The lease is full repairing and insuring at a current rent of £78,300 per annum exclusive reviewable every 5 years. Lyons Davidson sub-let part of the property to Westcountry Housing Association Ltd.
Parkway Court is one of Plymouths most popular out of town office parks close to Marsh Mills and the Devon Expressway.
Constructed in the early 1990’s the building provides 6,654 sq ft (618.13 sq m) of offices on two floors with 30 car spaces on the estate. The building provides the flexibility of sub-division in to three units.
Mike Oldrieve, head of Vickery Holman’s Investment Department, comments:
“The property investment market has seen values rise over the past 12 months due to the lack of quality stock. Fortunately offices which suffered most in the recession are still looking undervalued and to get an 8% plus return secured for a 10 year period looks very attractive for our clients. This follows hard on the heels of Vale House at Pynes Hill, Exeter, an office investment which Vickery Holman have recently sold”.
The Vendors were advised by the Bristol Office of Alder King.