BlackRock has put a Surrey office occupied by a division of banking giant Santander up for sale for offers of more than £16m.
The asset manager has tasked Acre Capital Real Estate with fielding offers for Santander House at 86 Station Road in Redhill. The asking price represents a yield of 8.25%. BlackRock bought the building in 2014 for £19.1m, according to Radius data.
The five-storey building comprises 47,000 sq ft of office space and is entirely let to Santander Consumer until May 2034, without breaks. Marketing documents claim the site is “mission-critical” for the tenant, housing 14 operational divisions.
Rent on the building is close to £1.17m a year, or about £24.80 per sq ft, and is subject to five-yearly RPI-linked reviews. The rent is forecast to increase by 16% between 2024 and 2029.
The marketing documents also highlight Formation Architects’ suggestions for a residential-led conversion of the building, which could make room for between 50 and 108 homes. The brochure describes the site as “ideally suited to become a thriving residential location”.
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