Real Estate Investors has confirmed the acquisition of two additional investment properties in Telford and Nottingham for a total consideration of GBP5.135m, producing a combined rental income of GBP506,710 per annum and a net initial yield of 9.26%.
The investment properties acquired are as follows:
Titan House, Euston Park, Telford – acquired from receivers. The building is situated on a modern business park, adjacent to Telford Central Station and Junction 5 of the M54. Titan House comprises 33,166 sq ft of modern office accommodation over 4 floors and 103 car parking spaces. The property is let to Hewlett Packard Enterprise Service UK Ltd with 4.5 years remaining and a current rental income of GBP270,000 p.a. The purchase price reflects a net initial yield of 9.91% and a low capital value rate of GBP83 per square foot. Whilst the property is fully occupied, the tenant currently benefits from a rent free period over the entire first floor, which offers good prospects for rental improvement.
Commodore Court, Nuthall Road, Nottingham – acquired from a private property company. The property comprises a prominent mixed use development, situated on a busy arterial route in Nottingham. The building incorporates three fully occupied retail units, occupied by Sainsbury’s Supermarkets Limited, Banardos and Bathstore Limited, with a weighted average annual unexpired lease term (WAULT) to expiry of 11.30 years and 5.27 years to break options. The property produces a rental income of GBP216,710 per annum and the purchase price reflects a net initial yield of 8.49%.
RLE : Real Estate Investors makes two acquisitions