BAM Properties sells Stockport office investment for £12.39 million
Hemel Hempstead, 1 March 2016 - BAM Properties has sold its office investment St Peter’s Square, Wellington Road, Stockport to a South African investor for £12.39 million. The sale reflects a net initial yield of 7%.
The landmark building provides 50,000 sq ft of Grade A office space. 95% is let to Sky, the leading home entertainment and communication company, until March 2025 with RPI linked rent reviews. The 2,697 sq ft ground floor retail unit is available but with strong letting interest. Developed by BAM this striking glass building has a BREEAM ‘Excellent’ rating.
Paul Smith, BAM’s northern development manager, said: ‘As anticipated we received considerable interest in this prime investment opportunity and received several offers. The Sky covenant was obviously a strong attraction for potential purchasers along with the Council’s proactive approach to the revitalisation of Stockport town centre. It is another example of overseas investors acquiring high quality real estate in the North West. Buyers are attracted by the rental growth prospects offered by the imbalance between supply and demand and the perceived economic benefits of initiatives such as the Northern Powerhouse. The sale of St Peter’s Square and Metro, Salford Quays last week, will now enable us to focus on our search for new development opportunities in the North of England.’
JLL acted for BAM Properties and Lindley Mortimer for the purchaser.