Savills, on behalf of Albion Investment Partners, has acquired Caerleon House, an office building in Newport from Millgrove Capital Ltd part of the MVJ Group for £3.1 million, representing a net initial yield of 11%.
Caerleon House is a newly refurbished 26,304 sq ft (2,443 sq m) office building at the established Cleppa Park, a business destination between Cardiff and Newport. A single storey building, the property provides open plan office space and is let to Carpeo, a business process outsourcing company, on a 15 year lease expiring in 2032.
Ross Griffin, director of investment at Savills Cardiff, comments: “We are delighted to have secured this fully let office building for our clients, it provided our client with an attractive running yield to an expanding tenant. The Newport office market is predominantly out of town developments like Careleon House popular with occupiers and investors alike.”
Knight Frank advised Millgrove Capital. Gareth Lloyd, Partner at Knight Frank comments: “With this successful sale our clients have been rewarded for the faith they had in the strengthening Newport office market, having acquired the building with vacant possession, securing the tenant and executing the sale all within 12 months.”