TR Property Investment Trust has sold its 62,200 sq ft Thames Central office building in Slough, Berkshire, to an unnamed client of Goodman Property Investors for £18.5m.
The purchase reflects a net initial yield of 5.5% and a capital value of £315 per sq ft.
This building was bought by the trust with vacant possession for £11m in June 2005, since when approximately £1.25m has been spent on the building.
It is now fully let to 12 tenants on 14 separate leases and produces a total rental income of £1m pa, or £17.25 per sq ft overall.
The Trust said the multi-let block was sold from its ordinary share class portfolio, which now totals 11.7% of its gross assets following the sale.
Deputy fund manager Marcus Phayre-Mudge said: ‘We are delighted with the sale of this asset, particularly in light of current market conditions. The sale realises a significant profit over the 2005 purchase price and underlines the Trust’s strategy of purchasing well specified properties in prime locations with opportunities to add value though active management.”
TR Property Investment Trust is managed by Thames River Capital and was represented by Lambert Smith Hampton; Goodmans Prperty Investors was represented by CB Richard Ellis.
