Taylor Woodrow and Palace Street Developments have put their Metro Point building in Sydenham Road, Croydon up for sale after fully letting it this week.
The 40,500 sq ft (3,762 sq m) office building has been acquired as a whole by the Home Office on an 18-year lease at a rent of £20 per sq ft (£215.28 per sq m).
It is likely to be sold for about £12m at a yield of around 6.75%.
James Henderson, director at Taylor Woodrow, said: “We are pleased to have completed the letting of this speculative building and we now plan to sell the investment.
“We will then look to inject the capital back into business opportunities around the M25 including Croydon, which we see as a centre for growth.”
Built on a speculative basis, Metro Point is Croydons only office development in excess of 15,000 sq ft (1,393 sq m) to have been undertaken in the last 10 years.
Taylor Woodrow and Palace Street were represented by Stiles Harrold Williams and Knight Frank, and the Home Office by Lambert Smith Hampton.
EGi News 18/04/02
