Sandringham Investments has sold the long leasehold investment on its 40,000 sq ft (3,716 sq m) Telelink II offices at Swansea Vale to an unnamed private company for £3.6m
The deal reflects an initial yield of 8.4%
The property is underlet to the Welsh Development Agency for 15 years from June 1999 for a rental of £320,000, which equates to £8 per sq ft (£86 per sq m) with five yearly reviews. It is occupied by the DVLA.
Lee Mogridge, director at Lambert Smith Hampton, which advised Sandringham, said the relatively low yield highlighted the market’s perception of rental growth in Swansea.
Recently Sandringham Investments also sold a long leasehold investment on its neighbouring Telelink V building at Swansea Vale to a private overseas investor for £3.75m.
EGi News 13/05/02
