Investment in Worcestershire is increasing, property consultancy Harris Lamb has reported, following the sale of a prime Worcester office building for £8million.
The sale of 3 Kings Court on the Kings Court Business Park is the third opportunity overseen by the business’ Investment team to be seized within the county in the last three months.
The building was let last year to the NHS by Lance Turner at the agency’s Worcester office, for an 18-year term at a headline rent of £15.50 per sq ft per annum with a tenants’ break clause at the end of the 12th year, and is now an administration headquarters for the NHS Trust’s three hospitals at Worcester, Redditch and Kidderminster.
The 31,525sq ft Grade A freehold office building is set over three storeys and well positioned on the Kings Court Business Park, immediately adjacent to the Hospital and less than two miles from Junction 6 and 7 of the M5 motorway. ‘’This letting represents a huge further investment into the city by the NHS’’ said Lance Turner.
Justin Marshall, from the agencies Birmingham Offices investment department said:
“This is one of the best Grade A office spaces in the county, with a new long lease to the NHS now in place, and with the tenant having undertaken significant refurbishment and fit-out works at the property, including the installation of the Counties main data server, it represented a very secure opportunity to the investment market’’
“The property has a passing rent of more than £490,000 per annum, and we presented the asset to the market seeking offers exceeding £6,600,000 on behalf of a major UK institution. Interest from investors was very strong, the market recognizing the very secure nature of the asset, and after a two round bidding process an £8m sale price was secured, reflecting a 5.8 per cent Initial Yield’’
The Kings Court sale is the latest of three seven-figure deals with investors.
Harris Lamb’s Investment team also sold Virginia House, a modern, fully let freehold office block adjacent to the Crowngate Shopping Centre, on behalf of Accrue Capital for £1.2m.
The building is multi-let with existing tenants ranging from Heart of Worcestershire college to the British Wheel Chair Basket Ball team and 3AAA Ltd Accountancy Training.
Comprising of 15,332sq ft set over four floors, the agreed sale was based on an income of £1,269,600 a year,
A private investor has also purchased Lauriston Park on Pitch Hill, near Evesham, for £2.10m. The building has an approximate income of £261,500 a year to tenants including Nick Whale Sports Cars, Stok UK Ltd and Active Power Solutions Ltd, and was sold on behalf of Midpark Capital.
Both Lance and Justin agreed that the region was now firmly on investors radar, commenting that: “These three sales, and the strong pricing achieved, show the positive recognition by investors of the region’s locational strengths, in terms of communications, labor force and also anticipated rental growth as a result of increased tenant demand against limited supply”