Commercial property consultancy Knight Frank has acquired the Cedar House office building in Gloucester on behalf of AEW UK REIT for £3.1 million
The purchase of the freehold of the 37,753 sq ft office building from clients of APAM represented a net initial yield (NIY) of 9.06%.
Cedar House was built in the early 1970’s and comprises a five storey office building let to the Secretary of State for Communities and Local Government. The lease is close to expiry but it is likely that the tenant will renew.
The office is south of Gloucester city centre and within 350 metres of the historic Gloucester Docks, the city’s major regeneration area.
Steve Oades, head of Knight Frank’s Capital Markets team in Bristol, said: “Cedar House is uniquely suited to the tenant’s operation and will provide AEW with an attractive yield during their occupation. In the future, the property’s close proximity to the Gloucester Docks will provide a future development opportunity.”
