Investment activity in the South West commercial property market is continuing briskly, with the latest transaction being the sale of Plymouth’s Endurance House.
The Parkway Court property was acquired by private clients of Vickery Holman for a purchase price of £870,000, reflecting a net initial yield of 8.48 per cent, allowing for normal purchaser’s costs at 5.8 per cent.
The office building is let in its entirety to solicitors Lyons Davidson for a term of 15 years which expires in 2024. The lease is full repairing and insuring, and currently generates a rental income of £78,300 per annum which is reviewable every five years.
The two-storey 1990s building provides 6,654 sq ft of flexible office space which offers the potential of sub-division into three units. Lyons Davidson has sub-let part of the property, to Westcountry Housing Association Ltd.
Mike Oldrieve, head of Vickery Holman’s Investment Department believes that, despite rising prices, there are still attractive opportunities for property investors in the region.
“The property investment market has seen values rise over the past 12 months due to the lack of quality stock.
“Fortunately, offices which suffered the most in the recession are still looking undervalued and to get an 8 per cent plus return secured for a 10 year period looks very attractive for our clients.”
“This (the Endurance House deal) follows hard on the heels of Vale House at Pynes Hill, Exeter, an office investment which Vickery Holman have recently sold.”
The vendors were advised by the Bristol office of Alder King.
Posted by Neil Bird
Photo by Vickery Holman
