Estates & General has sold an office in Telford to a private investor for £4.325m. The deal represents an initial yield of 6.75%.
The 4,710 sq m (50,700 sq ft) office block in the town centre is let to Wrekin district council on a 99-year lease running from 1980 and generates a rent of £305,000 pa.
E&G bought the building in July as part of a £34m portfolio acquisition but decided to sell it because it did not fit in with its strategy of directing investment towards the M25 and South East office markets.
E&G managing director Roger Dossett said: “I am delighted to have sold this office building so quickly after the portfolio acquisition in July. The proceeds of the disposal will bring about a significant reduction in Estates & General’s level of gearing.”
Lewis & Tucker acted for E&G, while the private buyer acted for itself.
EGi News 27/10/98
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