FHP News
The premises were let to Omega Red Group who are a UK market leader in electrical earthing systems and lighting protection. They have been recently acquired by South Staffordshire Plc group of companies.
The premises were let on a residue of a 12 year FRI lease from August 2002 expiring July 2014 at a rent of £75,500 per annum. The sale price agreed was £500,000, to show an initial yield of 14.26% after costs.
Noel Roper of FHP advised the current owners throughout and comments:-
“This was a difficult property to sell, bearing in mind the relatively short unexpired term of the lease and the high office content. The property had been acquired by certain individuals and put within their pension fund. However, due to the expansion of the business it was necessary to carry out substantial works of extension and including a 2 storey office building which resulted in the property having an above average high office content. Consequently this was reflected in the sale price of the property and the appropriate yield of some 14.26%.
It should be noted that under the terms of the lease the permitted use was B1/B2 and B8 and it was on this basis that the rent was reviewed to that basis”.
END
Noel D. Roper
Date: 07 February 2012
Tel: 0115 8411132/Email: noel@fhp.co.uk