Real estate investor and manager Cromwell Property Group has sold Poseidon House in Cheadle, South Manchester, to a London based private investor for £6.9m, reflecting a net initial yield of 6.80%. The asset was part of the Cromwell European Diversified Fund portfolio.
The 35,842 sq ft, three-storey office building is fully let to Thales for a further 11 years. Thales uses Poseidon House as an HQ from which to service contracts with The Ministry of Defence, Transport for London and The UK Space Agency.
Stephen Cahoon, Head of Asset Management at Cromwell Property Group in the UK, commented: “This was a great example of a straight forward business plan, well executed, to add significant value for our client. In 2014, we identified an opportunity to acquire Poseidon House at what we considered to be opportunistic pricing, we worked with our tenant to ensure they were satisfied with the building, and then agreed an early lease extension. The quality of both the building and the tenant then made for a competitive sales process, achieving pricing which crystallised an impressive 17.9% IRR.”
Cushman & Wakefield advised on the sale.
