Office and sheds specialist McKay Securities has bought 1 Crown Square in Woking, Surrey, from Cordea Savills.
The REIT paid £6m for the multilet property, representing a net initial yield of 9.3%.
The property generates rent of £588,000 pa. Tenants include Procter & Gamble, Royal Bank of Scotland and Petrofac, which together pay 63% of contracted rents.
Simon Perkins, managing director of McKay, said: “1 Crown Square provides an attractive income yield off low rents.
“In the short term, our active approach to building management will improve amenity for existing occupiers, and enhance income and capital returns with improved rents and savings on running costs.
“Returns will be further enhanced by improving rental levels in the town, as evidenced in recent lettings.
“The vacancy rate of good quality floor space in Woking is only 4%, which is similar to many town centres in the South East, where recovering occupier demand has an increasingly limited choice of buildings.”
Strutt and Parker acted for McKay; Savills advised Cordea Savills.
nick.whitten@estatesgazette.com
