Warner Estate Holdings PLC and Morley Fund Management have today announced the strategic acquisition of New Castle House in Nottingham on behalf of the Apia Regional Office Fund for €21.7 million €(£15.3 mln.), reflecting a net initial yield of 5.7%.
Purchased from LaSalle Investment Management on behalf of Mars Pension Trustees, the iconic four-storey Headquarters office building provides 20,600 m² of air-conditioned office space. The property is fully let to Gala Coral Group and UPS for a further twelve and ten years respectively.
Following the appointment of Robert Game as Managing Director in November last year, this acquisition is in line with a stated strategy to build a UK wide portfolio of town centre and city centre offices in major regional centres, bringing the Fund's total assets to €668 million (£470 mln.).
Michael Stevens, Property Director of Warner Estate comments: "This unique art deco headquarters property, offers excellent prospects for future rental growth and will benefit from planned investment concentrated in the southern area of Nottingham City centre, including the redevelopment of the nearby Broadmarsh Shopping Centre and the continued regeneration activity focused around Nottingham Railway Station."
Source: Warner Estate Holdings PLC