Rockspring Property Investment Managers has sold the freehold interest in Newplan House, Epsom to clients of Cornerstone Real Estate Advisers LLC for £6.9 million, representing a net initial yield of 6.25%.
Located in the centre of Epsom, Newplan House is a modern, Grade A building comprising 23,100 sq ft of refurbished office space. Following refurbishment, Hanover Green let the offices to Atkins Limited, SeeAbility and Rosebery Housing Association Limited. There is a weighted average lease term of 8.75 years.
Rockspring acquired the property in 2006. Since then it has implemented a successful asset management programme, including a comprehensive full refurbishment of the office floors and common areas, followed by an active marketing campaign leading to a fully let building attracting good quality occupiers.
Katie McDermott, Assistant Director of Rockspring Property Investment Managers, said: “Newplan House was under our ownership for a number of years and we were successful in securing full occupancy of the building following the implementation of our upgrade programme. With headline rents rapidly moving ahead over the past 18 months, it was a natural time for us to capitalise on our repositioning of the asset.”
Darren Hutchinson, Director – Fund Management, Cornerstone Real Estate Advisers, said: “Newplan House is a fully let, modern office building which has been refurbished to a high standard and generates an attractive yield. The South East is experiencing a sustained low supply of Grade A space and, as occupational demand continues to grow, this building should be well positioned to benefit.”
Rockspring was advised by Hanover Green on the lettings and sale of the building.