Schroder Real Estate Investment Trust (SREIT) has sold the Victory House office building in Brighton to insurer NFU Mutual for £36.5 mln (€42.4 mln).
The price reflects a net initial yield of 4.83% in September 2019, Schroders said.
Situated in central Brighton, the 87,652 sq ft (8,140 m2) property is fully let to BUPA Insurance Services and Mott MacDonald at a current rent of £0.79 mln, increasing to £1.88 mln in September on expiry of a rent-free period.
John Rodgers, head of capital markets at Gerald Eve which advised SREIT on the transaction, said: ‘Located close to Brighton station and with a good tenant profile, Victory House offers good long-term income and strong asset management initiatives. This disposal is in line with SREIT’s wider strategy of selling lower-yielding properties in order to generate gains from asset management, and realises the capital growth in the asset during the hold period. It also demonstrates that despite the Brexit noise, there is still significant depth in the market for core assets which are achieving strong pricing.’
NFU Mutual was represented on the deal by JLL.
