SI Pension Trustees Limited has paid a private property company around £3.8m for a short leasehold on an office block in Newington Causeway, SE1. The fund is looking to put a further £15m in short leasehold investments.
Nigel Holroyd of Conrad Ritblat who is advising SI Pension Trustees said: “We continue to have substantial funds to invest in short leasehold investments.” On the shopping list are short leaseholds, prime retail and office freehold investments countrywide.
The 7,339 sq m (79,000 sq ft) office property is sub-let to the Department of Health on a lease with just over seven years unexpired. The rental income of £778,875 pa reflects a 20% yield.
“We were able to create a short leasehold interest out of a heavily over-rented office building, at a price which was attractive to both the purchaser and vendor,” added Holroyd.
In a separate transaction, SI Pension Trustees has paid a client of Steadman Brierley £2.3m for a 4,645 sq m (50,000 sq ft) distribution warehouse in Warrington, Cheshire. The deal reflects a yield of 8.25%. The building is let to Securicor on a 20 year lease which is subject to review in June 1997.
EGi News 22/01/97
