Topland Invests £12m to Buy Three Regional Office Rentals
The Topland Group has purchases three regional office properties for a total of £11.8m.
Located in Stevenage, Harlow and Bristol the acquisitions help to raise Topland’s investment in UK office rentals to over £24m for July/August.
Topland’s MD of Operations, Clive Bush said: “With these purchases, and that of Capital Tower Cardiff, we have now completed 400,000 sq ft of acquisitions over four buildings in the past month.”
The 140,995 sq ft Whitefriars Building in Bristol was acquired for £6.5m. With a secure rental income from Zurich Insurance and Bristol PCT, the investment will provide an attractive 20% net initial yield for Topland.
In Hertfordshire, the property investor has bought Wiltron House a 31,365 sq ft Stevenage office rental let to Anritsu Ltd. Topland paid £1.3m to the Receiver Grant Thornton, following the landlord’s default.
Further east in Essex, Topland has also acquired Pageant House on Harlow Business Park for £4m. Once again the 33,593 sq ft Harlow office rental is benefits from strong covenant of blue chip tenant. The rent from Santander Bank UK will generate a net initial yield of 9.4%.
At £12.35m, Capital Tower was the largest of the recent transactions and form part of Topland’s long term strategy, confirmed Mr Bush
“We are taking a long-term view on these assets despite the short income streams as we believe they represent value for money despite the difficult occupational market in the regions.”