Orchard Street Investment Management has sold two office buildings at Centrium Business Park, St Albans, to ING Real Estate Investment Management for £13.4m.
Orchard Street said the deal reflected a net initial yield of 7.54%.
Both buildings are let to Premier Foods for a remaining lease of seven years at a rent of £1.07m pa, or £22.70 per sq ft.
Completed in 2002, the buildings, called CT2 and CT3, are grade A and total 47,000 sq ft. They form the park’s first phase of development.
Gary Felce, chief investment officer at Orchard Street, said: “Having acquired the two properties in 2002 on completion of the development, we believe now is the right time to exit as we look to rebalance the portfolio. This latest sale highlights the appetite for well-located, high-quality office buildings with strong transport links to the rest of the UK.”
Strutt & Parker advised Orchard Street; Knight Frank advised ING Real Estate Investment Management.
nathan.cross@estatesgazette.com
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