HARRIS LAMB OVERSEES SALE & LEASEBACK DEAL FOR OVER £1.8M
Harris Lamb has sold a law firm’s Telford headquarters more than £1.8m in a sale and leaseback Investment deal.
The business provided insight and advice to Martin Kaye Developments LLP in respect of its three-storey headquarters on Euston Way Business Park, before being instructed to place it on the Investment market.
The 15,861 sq ft property is to be let in its entirety to Martin Kaye LLP on a new 10 year lease at an initial rent of £170,506 per annum, with the second floor having been sublet to Incessant Technologies (UK) Ltd in 2016 at a passing rent of £56,810 per annum.
Alex Eagleton of Harris Lamb’s Investment team, said: “We were able to provide the business with advice and recommendations on a sale and leaseback of its premises, The Foundry, in relation to lease terms, rent and achievable sales prices, and set a market price of £1, 835,000, reflecting a yield of 8.75% and representing a capital value of £116 per square foot.
“We received a number of expressions of interest from investors, property companies and high net worth individuals, who were then invited to submit best and final bids for the property, with the successful buyer, a private investor, securing it for a figure in excess of the asking price.
“We are delighted with the level of interest generated by this opportunity and the subsequent outcome for our client. Sale and Leaseback deals of this nature provide investors with the chance to acquire profitable opportunities while enabling vendors to negotiate bespoke lease terms and release capital where there is no operational need for them to own the building.”