The Council of the London Borough of Sutton has bought Oxfam House, the international aid charity's UK headquarters, from Aviva Investors for £29.9 mln (€35 mln).
The asset, located in Oxford Business Park in Oxford, was owned by Aviva Investors Pension Property fund (AIPP) and has been Oxfam's UK headquarters since 2005.
A Sutton Council spokesperson said: 'This purchase will provide an estimated annual rent payment to the council of £1.69 mln. The council is acquiring this property in line with its strategy to generate secure medium to long term income from property investments.'
According to the council, the net surplus after costs will be £484,000 per year initially with rental growth expected to deliver an increase to an average of £662,000 in future years. Oxfam has 8.5 years left on its lease.
'Overall, this meets the 2% net return criteria agreed by the Council for property investments. Each sale or purchase is judged on its commercial merit and the purchase of Oxfam House was considered a good deal for Sutton,' the spokesperson concluded.
Cushman & Wakefield acted for Sutton Council. Strutt and Parker advised Aviva.
