Cromwell Property Group is selling the Imperial Place office block in Borehamwood, Hertfordshire, for £60m, a yield of around 7%.
The company, previously operating as Valad, bought the 220,500 sq ft campus in 2014 and has now instructed Gerald Eve to sell it.
The planned sale of the campus’s four buildings comes after an asset management strategy in which Cromwell leased or extended leases totalling 70,000 sq ft.
In the surrounding market, permitted development rights allowing office-to-residential conversions have removed large amounts of local office stock, pushing up rents in the area.
Borehamwood has one of the highest office to residential conversion rates in the UK with 27% of total office stock lost to residential uses since 2013.
Income is [resently derived from 18 tenants paying an average of just over £19 per sq ft, with the average unexpired lease term at 3.4 years to break options and 6.2 years to expiries. The opportunity for office to residential conversions would then be available.
Tenants include Just East, Signet Trading, Pizza Hut, Buyagift, Taylor Wimpey, Alstrom Transport, JBS Global, Dorel and Regus. The site is 6.58-acres freehold.
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This article was first published on 24 October.
