Commercial property investors, Praxis, has announced the completion of its £11m acquisition of 142,231 sq ft office building at Pride Park in Derby.
Former home of internet bank, Egg, the prime headquarters office building was acquired from Helix Property Advisors off a 15% net initial yield and is now let to customer contact service specialist Webhelp UK.
The 180 acre business park holds host to other commercial, retail and leisure occupiers, as well as being considered one of the largest and most successful single urban regeneration projects in the UK.
Head of Capital Markets, Gary Roberts, commented: “The acquisition of this property is a continuation of our strategy to acquire assets where the pricing is attractive as a result of some underlying defect that reduces its appeal to the wider investment market.
He continues: “What is evident in the market at the moment is that there is a significantly greater number of these opportunities where the transaction size is below £20m. The concentration of both debt and equity capital in too few investment mandates means that many investors are seeking to deploy in scale for efficiency purposes and appear to be willing to forgo the better opportunities that this market is offering.
“We will continue to be flexible in our approach and expect to programmatically build our portfolio through 2016.”
Praxis was advised by Finn & Company, while Fineman Ross advised Helix Property Advisors.
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