Rotch Property Group sells Stevenage properties for £43 million
20 Nov, 2009, Stevenage
Hertfordshire County Council has acquired two adjacent office buildings in Stevenage from Rotch Property Group for £43 million representing a net initial yield of 7.72%.
Farnham House and Robertson House are located on Gunnels Wood Road, Stevenage SG1 2ST and are sublet to Hertfordshire County Council until 2018 by Aviva Central Services UK Limited. Hertfordshire County Council also holds reversionary leases on the properties which expire in 2021. The current passing rent totals £3,511,847 per annum equating to £22.83 per sq ft per annum.
The high quality buildings total 153,820 sq ft and were built in 1992. Hertfordshire County Council recently completed a comprehensive refurbishment programme investing £19 million in upgrading the properties.
James Leach, partner business space investment, Cushman & Wakefield: “The strength of the investment market especially in prime south east towns has been improving throughout the last few months although there remains a shortage of quality assets for sale. This deal is one of only eight within the UK national office market to be agreed over £40m this year.”