Franck-Steier Price has recently completed the sale of a modern business park headquarters office building on the established Grove Park Business Park in Leicester.
The property comprises a three storey well specified office building totalling 21,393 sq.ft and benefits from air conditioning, suspended ceilings, raised floors and a passenger lift.
The building is let to My Home Move Limited for a term of 15 years from 25th December 2007. The current passing rent is £314,430 per annum reflecting £14.87 per sq.ft. There are 4 yearly rent reviews and the second floor is sub-let to Bibby Factors Leicester Ltd. The ERV was in the region of £360,000 (£17.00 per sq.ft).
The purchase price of £5,000,000 reflects a net initial yield of 5.90%, assuming purchaser’s costs of 6.31% and commenting on the deal, Andrew Franck-Steier said “based on our quoting price of £4,540,000 we were delighted to achieve such a price given the general apathy towards out of town offices and this price far exceeded even our most optimistic views”
The purchaser was a private overseas investor, represented by Banks Long & Co.