4th May 2022
Pennon Group sells St Austell office building for £2.375 million
Pennon Group Limited has completed on the sale of Dowrglann, a single let office investment in St Austell, Cornwall, to the Sydney & London Properties Ltd group of companies (Sydney & London).
The freehold office property totalling 18,434 sq ft is let to South West Water on a new 15 year lease at an initial rent of £150,000 per annum with five yearly CPI linked reviews with a 2- 4% cap and collar.
The property is a circa 1990 purpose-built detached office building providing two floors of office accommodation, arranged in two wings.
Sydney & London secured the asset for £2,375,000, reflecting a net initial yield of 5.94%.
Alder King & JLL advised the vendor and Aurum Real Estate acted for the purchaser.
Lucy Costain of Alder King said: “This investment sale attracted a lot of investor attention and the sub 6% net initial yield achieved shows the continued appetite for long let investments to good covenants with secure rental uplifts.”