Warner Estate Holdings PLC and Morley Fund Management have announced the acquisition of St Magnus House in Aberdeen on behalf of the Apia Regional Office Fund from Stainton Capital (Foxhound) Ltd for approx. €32.5 million (£23.7 mln). This reflects a net initial yield of 5.76% and reversion to 5.88% on conclusion of newly created car space lettings.
St Magnus House is a prime city center office building overlooking Aberdeen harbour and provides 7,449 m² of refurbished office space over six floors with 129 car parking spaces.
The property is fully let on six leases to CNR International (UK) Ltd, Lundin Thistle Ltd, the Scottish Ministers and Nestor Primecare Services Ltd. The current rental income of £1.443 million per annum equates to a low average rental rate of £18.00 per ft².
Robert Game, Managing Director of Apia, comments, "St Magnus House represents an excellent acquisition for the Fund, complementing its existing holding in the City. Aberdeen is a favoured location due to the strength of its economy and the restricted supply of good quality office space."
The Apia Regional Office Fund is one of a few specialists investing solely in offices outside Central London. This acquisition follows the purchase of New Castle House, Nottingham in January this year and takes the Fund to £497 million across 22 properties.
Apia is asset managed by Warner Estate and fund managed by Morley Fund Management.
Source: Warner Estate