Nurton Development’s One Warwick Technology Park office building has been sold for £13.2 million.
Knight Frank acted on behalf of the Local Authority purchaser and JLL represented Nurton, in a deal reflecting a Net Initial Yield (NIY) of 6.99%.
The 49,157 sq ft multi-let headquarters-style building is located on the 70 acre Warwick Technology Park, near Junctions 13, 14 and 15 of the M40 motorway. It was recently comprehensively refurbished by Nurton to provide Grade A office accommodation over ground and two upper floors.
The building is fully-let to three principal tenants – Delphi Diesel Systems, Baker Hicks and Accenture – and currently produces a net rental income of £984,658.50 per annum.
Rupert Young, development director of Nurton Developments said: “We’re delighted with the sale of this value added opportunity, which performed exactly to business plan over a near three year period.”
Ashley Hudson, head of the Capital Markets team in Knight Frank’s Birmingham office, said: “One Warwick Technology Park offered our client a high-grade office building in a prime location with excellent covenant strength and with opportunities for tenant regearing.”
Allan Wilson director Capital Markets in JLL’s Birmingham office, who originally acquired the offices for Nurton Developments in a JV with a private investor added:
“JLL were delighted to be involved from the outset in such a successful project and we believe it underlines that add value opportunities still exist across the region despite the current strong market pricing.“