Warner Estate Holdings PLC and Morley Fund Management have announced the strategic acquisition of New Castle House in Nottingham on behalf of the Apia Regional Office Fund for approx. €22 million (£15.3 million), 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 67,594 ft² of air-conditioned office space. The property is fully let to Gala Coral Group and UPS for a further twelve and ten years respectively and the average rent equates to an overall rate of £13psf inclusive of parking.
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 center and city center offices in major regional centres, bringing the Fund's total assets to approx. €670 million (£470 million).
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 center, including the redevelopment of the nearby Broadmarsh Shopping Centre and the continued regeneration activity focused around Nottingham Railway Station."
Apia is asset managed by Warner Estate and fund managed by Morley Fund Management.
Source: Warner Estate