UK's Hertfordshire County Council has acquired two adjacent office buildings in Stevenage from Rotch Property Group for £43 mln (EUR 48 mln). The transaction represents a net initial yield of 7.72%.
UK's Hertfordshire County Council has acquired two adjacent office buildings in Stevenage from Rotch Property Group for £43 mln (EUR 48 mln). The transaction represents a net initial yield of 7.72%.
Farnham House and Robertson House are sublet to Hertfordshire County Council until 2018 by Aviva Central Services UK Limited. Hertfordshire County Council also holds reversionary leases on the properties which expire in 2021. The current rent amounts to £3.5 mln per annum equating to an annual £22.83 per sq ft.
The high quality buildings total 153,820 sq ft (14,200 m2) and were built in 1992. Hertfordshire County Council recently completed a comprehensive refurbishment programme investing £19 mln in upgrading the properties.
'The strength of the investment market especially in prime south east towns has been improving throughout the last few months although there remains a shortage of quality assets for sale,' said James Leach of C&W, which advised on the transaction. 'This deal is one of only eight within the UK national office market to be agreed over £40 mln this year.'
