A fund advised by Brockton Capital has completed the sale of the freehold investment of Martello Court and Dorey Court in Guernsey to an overseas investor for £60.65m, reflecting a net initial yield of 6.4%.
Martello Court and Dorey Court, located in the island’s capital, St Peter Port, provide 89,100 sq ft of grade-A office space.
The freehold assets are multilet to tenants including ABN AMRO, Aon, Investec and the Royal Bank of Canada. The offices benefit from a weighted average unexpired lease term of 13.5 years.
Brockton director Max Bassadone said the off-market transaction marked the end of “a highly successful investment for Brockton ensuring considerable value accretion for our investors”.
“Throughout our investment period, we have successfully delivered our original business plan,” he said, “which included a comprehensive refurbishment of Dorey Court and securing new tenants RBC, Investec and Aon Insurance, with zero void and achieving a record rent for Guernsey of £43.50 per sq ft.”
Noel Lander, director at JLL, which advised on the sale with Savills and Mourant Ozannes, said: “The sale of Martello Court and Dorey Court demonstrates the appeal of the Channel Islands’ investment market, which offers a significant premium to major UK and European cap rates and the potential to deliver attractive cash-on-cash returns.”
The purchaser was advised by Carey Olsen.
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