27th June 2013
Investment sale at 1120 The Square, Gloucester Business Park
Alder King’s investment team has sold a high quality office investment at Gloucester Business Park on behalf of Goodman, the developers of the Park.
Building 1120, The Square, provides 19,800 sq ft of accommodation and is let until January 2022 to Detica Ltd, part of BAe Systems.
The success of the location and strength of the tenant generated several competitive bids from predominantly private investors which took the pricing beyond the asking terms.
The successful bidder and eventual purchaser are private clients of Strutt & Parker, who completed the acquisition within four weeks at a price of £3.82m reflecting a net initial yield of 8.12%.
Mark Rothwell, investment partner at Alder King who represented Goodman in the sale, explained: “There is a growing confidence amongst private investors who, after several years of low cash returns, erratic price movement in the equities markets and the recent fall in the price of gold, have decided that the returns available from good quality commercial investments are currently very attractive.
“Rents and capital values set on Gloucester Business Park are consistently amongst the highest in the area, reflecting the Park’s position as the one of the premier business locations in the region.”