Franck-Steier Price has recently acted on behalf of Colia Investments in the acquisition of a modern business park office on Eureka Business Park, Kent.
The property was built in 2012 and provides a high quality business park office extending to 10,313 sq ft across two floors with the benefit of 39 car parking spaces on a site of 0.75 acres.
The property is let to RIFT Ltd, a UK tax consultant, with 8 years remaining. They have been in occupation since the property was built for them in 2012. The passing rent is £208,301 per annum which reflects a low £20.19 per sq ft. There is a fixed rental uplift in August 2022 to £223,542 per annum (£21.67).
The purchase price paid was £2,300,000 which represents a net initial yield of 8.52%, with a reversionary yield in 2022 of 9.14% after usual costs of purchase.
Commenting on the transaction, James Hemstock said “We are delighted to have acted for Colia Investments on this purchase, continuing our ongoing relationship with them. The property provides an excellent income stream with guaranteed rental growth in 2022 and as a modern building in a robust location, it provides long term security for their investment strategy as their portfolio continues to grow.”
The purchaser was Colia Investments who were represented by Franck-Steier Price whilst Bidwells represented the vendors, Trinity College Cambridge.