Savills, on behalf of Pelican Partners (Peterborough) LLP, has sold the freehold of Midgate House on Midgate in Peterborough to First Urban. The property was being offered to the market at a guide price in excess of £7.060million, reflecting a net initial yield of 7%.
Situated within the heart of Peterborough city centre, the building comprises 52,253 sq ft (4,854 sq m) of office space across the upper three floors and 18,747 sq ft (1,741 sq m) of ground floor retail accommodation across 11 units.
The office element is currently multi-let to three tenants including RNIB, Reed in Partnership Ltd and Taskmaster Resources Ltd, whilst the retail units are let to occupiers including Ladbrokes, Greggs, Co-op Funeral Services and the Tanning Shop. As a result, the building generates an annual rental income of £558,000.
Edward Gee, associate director in the business space team at Savills Peterborough, comments: “Midgate House provided the purchaser with the opportunity to acquire a strong income generating asset in an prime city centre location. The property also offers significant future asset management opportunities.”
First Urban was advised by Tydus Real Estate.
