The Conygar Investment Company has surrendered occupational leases and sold Brunswick Point in Leeds for a combined £6.6m.
The 63,000 sq ft freehold office building had just over 33,000 sq ft vacant and although the rent previously payable by Clydesdale Bank was £390,000 pa, the company will save void costs of around £420,000 pa.
Combined with the recent disposal of the 100,000 sq ft vacant industrial space at Blackpole trading estate , Worcester, for £2.9m, the overall portfolio vacancy rate has fallen to 11.3% compared with 16.7% at 30 September 2013. Potential void costs of £610,000 pa are no longer payable.
Robert Ware, chief executive of Conygar, said: “We are pleased to have taken the opportunity presented by an improving market to dispose of two of our more challenging assets, thereby significantly reducing our vacancy rate and avoiding annual empty property costs of £610,000.
“Combined with our other asset management initiatives I would anticipate the vacancy rate to continue to reduce and for irrecoverable costs to fall significantly.”
annabel.dixon@estatesgazette.com
