Cluttons sells Sunderland office investment
Cluttons has sold the virtual freehold interest in Tyne House, a Barclays Bank office building at Doxford International, Sunderland for the Charities Property Fund (CPF).
Doxford is one of the north east's premier business parks, positioned at the junction of the A19 and A690 to the south west of Sunderland. It is strategically located close to Newcastle and Teeside airports and has excellent rail links via the East Coast main line.
Tyne House comprises a modern, Grade A, purpose-built office building of approximately 55,821 sq ft (5,186 sq m), constructed in 1997, with an excellent car parking ratio of 1:230 sq ft.
The property is occupied as a tier one call centre and is in use 24 hours a day in conjunction with the adjoining building, which is also occupied by Barclays. The property is let to Barclays Bank plc on a 15 year lease from 18 March 1998, expiring in March 2013, subject to a reversionary lease for an additional 10 years, expiring in March 2023 (11.5 year’s term certain). The current rent of £702,000 per annum equates to £12.69 per sq ft, with the next rent review in March 2013.
Cluttons was instructed by CPF following the re-gearing of the occupational lease. The property was acquired by clients of DTZ, following a competitive bidding process, in September 2011 for £8.57 million, equating to a net initial yield of 7.74%. This figure, in excess of the asking terms, reflects the current strength of demand for well secured, high-quality office investment property.
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