Eastern Electricity has reversed its investment policy prior to the demerger from the Hanson Group by disposing of one of its best-performing properties.
The utility has sold the Oasis unit at 5 Market Street, Cambridge, to Guardian Properties for £1.41m, in a deal which reflects a yield of just over 5%. Oasis holds the lease for another 6 years.
Eastern Electricity’s “golden brick” policy – pledging that key properties would be retained either for investment returns or for owner occupation – dates from before Hanson’s take-over of the company.
Its change of plan comes in advance of a planned demerger. Hanson intends bringing Eastern Group, which comprises Eastern Electricity and Peabody Mining, to the market in January, 1997.
The price paid by Guardian reflects the shortage of investment opportunities in the prime retail core of Cambridge. Over the past three years there have been only five retail investment sales in the city centre.
Bidwells acted for Guardian Properties.
EGi News 18/10/96
