Sainsbury’s has appointed Cushman & Wakefield to sell Swedish electric car maker Polestar’s 66,000 sq ft head office in Ansty Technology Park, Coventry, for offers over £19m.
The £19m asking price for the grade-A office, called Beech, reflects a 8.25% net initial yield and a capital value of £284 per sq ft, assuming purchaser’s costs of 6.74%.
The retailer owns the freehold to the site. It also owns and occupies a store support centre located next to the Beech building, called Cedar. Both were built in 2009.
The office is undergoing extensive refurbishment, with an estimated spend in excess of £13m.
It will be let to Polestar Automotive as its new UK HQ on a 15-year lease with a break at year 10. The lease will commence from practical completion of the refurbishment, slated for the end of July this year.
The total passing rent will be £1,674,190 per annum, representing a rent of £25.50 per sq ft. The lease contains a 16-month rent-free period, with a further six months if the tenant does not operate its break.
The lease also provides for 351 car parking spaces allocated to Polestar, of which 73 are in the surface car park included in the sale. The remaining 278 spaces are in the vendor’s retained multi-storey car park.
Coventry and the surrounding region are the “UK’s centre of automotive manufacturing, research and development”, Cushman said in marketing documents. Notable local occupiers include Jaguar Land Rover, London Electric Vehicle Company, Peugeot Citroen, Rolls-Royce, Aston Martin, Dennis Eagle, the London Taxi Company and Volvo.
Polestar was founded by Volvo in 2017. Volvo sold its 48% share in the electric car manufacturer to its owner, China-based Geely Holdings Group, earlier this year.
Send feedback to Akanksha Soni
Follow Estates Gazette
