Sandford House, 41 Homer Road, Solihull B91 3QJ
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Atlas Real Estate has recently completed the acquisition of a modern town centre office building on behalf of AEW UK REIT Plc.
The building comprises a modern headquarters office totalling 34,000 sq.ft in the heart of Solihull’s office district on Homer Road and directly opposite Touchwood Shopping Centre.
The property is let to The Secretary of State for Communities and Local Government on a lease expiring 24/12/2019. There is a tenant break option effective 24/03/2017 subject to a break penalty of £781,000 per annum. The current passing rent is £625,000 per annum which reduces to £511,000 per annum if the tenant does not break their lease.
The property was purchased for a price of £5,400,000 which represents a net initial yield of 10.9%, assuming full costs of purchase of 5.8%.
Atlas Real Estate acted on behalf of AEW and Andrew Franck-Steier commenting on the deal said “This office is a key location for the Immigration Service who has been in occupation for a considerable time.If the tenant does decide to leave, it will leave AEW with a fantastic opportunity to carry out a comprehensive refurbishment of the property and let it into a strong leasing market starved of stock”.
