Lothbury Property Trust is buying Sapphire Court at Walsgrave Triangle, Coventry, for £15.475m following Barclays Bank’s decision to market the building earlier this year, as revealed by EGi.
Contracts have been exchanged for the purchase of the office investment on a net initial yield of 6.82%.
Sapphire Court is let on two FRI leases from August 1997 with 20-year breaks to AAH Pharmaceuticals at a starting rent of some £152.85 per sq m (£14.20 per sq ft). Barclays was representing owner Lime Bank Property Company.
Gartmore, which advised Lothbury, also acted for National Westminster Life Assurance on the recent purchase of DMC Telecom’s building at P&O’s Middlemarch Business Park, also in Coventry, for around £1.6m on an approximate net initial yield of 7.5%.
Gartmore’s Simon Radford said: “These acquisitions conform with our strategy to purchase quality, well-specified business park investments which are let at conservative rental levels to substantial covenants. We believe rental growth prospects for Coventry offices are attractive, as strong occupational demand has resulted in a shortage of good quality accommodation being available.”
Morgan Williams represented Gartmore. D&P Holt advised both vendors.
EGi News 02/12/98
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