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February 2019

Unit 9, Mitchell Court, Castle Mound Way, Rugby, CV23 0UY

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sold

The property is located on an established business park 2.8 miles north of Rugby town centre and adjacent to J1 of M6.  The property comprises a modern detached office building extending to 9,996 sq.ft over three storeys with 40 allocated car parking spaces.  Let to the strong covenant of FLSmidth (UK) Ltd on a 10 year lease expiring June 2024 providing an unbroken term of 5.75 years.  Passing rent of £115,805 per annum reflecting a low £11.50 per sq.ft.  Offers sought in excess of £1,325,000 reflecting an attractive net initial yield of 8.24% and a capital value of only £132.55 per sq.ft.

Franck Steier Price has recently completed the sale of a single let business park office investment on behalf of Colia Investments.

The property is located in the Central Park area of Rugby, an established commercial location 3 miles north of Rugby town centre and adjacent to Junction 1 of the M6 motorway.

The detached office was built in 2001 and comprehensively refurbished in 2013 prior to the tenant taking occupation. The office is set out over three storeys and extends to 9,996 sq ft featuring LED lighting, air-conditioning, raised access floors and a 6 person passenger lift.

The property is held freehold and is let to FLSmidth (UK) Ltd on a 10 year lease from 27 June 2014 without break. The passing rent is £115,805 per annum reflecting low rent of £11.50 per sq ft with an open market rent review due in June 2019.

The property was sold to Kindale Ltd for £1,400,000 which reflected an initial yield of 7.80%. CBRE Birmingham acted for the purchaser.

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