Orchard Street has exchanged contracts with developer McAleer & Rushe to buy the Brinell Building in Brighton for £39m.
The deal reflects a net initial yield of 4.75%.
The scheme, set to complete construction in Q2 this year, will comprise around 65,250 sq ft of Grade A office space across seven floors and a roof terrace.
It is fully prelet to three tenants – Unity Technologies, Diversified and Dehns – and has achieved record rents for the city of around £32 per sq ft.
Unity, which is based in San Francisco, will be the anchor tenant. All of the leases will run for a minimum of 10 years.
Tom Chadwick, partner at Orchard Street, said: “We are very confident in the prospects for the Brighton office market given the extremely favourably supply-demand conditions, as illustrated by the 100% prelet nature of the building.”
Orchard Street Investment Management was advised by JLL.
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