EGi and the property press have confirmed that London & Stamford have bought Unilever House in Leatherhead, Surrey for around £61.0 million, reflecting a sub 7% initial yield. Reports confirm that the company has also exchanged contracts to buy Marlow International, a substantial business park investment in Buckinghamshire for slightly in excess of £50.0 million.
Both properties provide good quality south east office investments let to substantial tenants and providing attractive yield returns.
Mellersh & Harding have recently completed the Valuation of a substantial investment portfolio which included some large prime south east office investments. Investigations showed that institutional demand and overseas demand for such assets is presently strong where good length, secure income can be offered.
David Mundy, Partner at Mellersh & Harding confirmed that ‘a number of buyers looking at these types of investment are attracted by the substantially higher yields than are presently available from Central London office investments’.
The Marlow international property comprises in excess of 200,000 sq ft of office buildings let to tenants including Veolia Water Solutions and Dunn & Bradstreet. At Unilever House the tenant held a lease for a further 11 years subject to five yearly upward only rent reviews.