New E.ON offices sold for £30m
Power giant E.ON’s new Nottingham city centre office building has been sold to a Leicester-based property investment group, just weeks after construction started. Charles Street Buildings has bought the 105,000 sq ft development for about £30m.
Construction company Miller Birch is building the nine-storey scheme on the site of Nottingham City Council’s former Treasury Building near the Guildhall. The site has been pre-let on a 15-year lease to E.ON.
Miller Birch’s development director, Mark Bielby, said: “We’re delighted to be working in partnership with Charles Street Buildings. The letting to E.ON was the largest pre-let to be concluded outside London last year and now we’ve managed to secure the sale of the development for around £30m at a sub 7 per cent yield.
“When we initially proposed the scheme we were excited by its potential and it is a clear indication of the quality of the development that it has attracted so much interest.”
Charles Street Buildings Group owns more than six million sq ft of investment property throughout the UK, including sites in Leicester London, Birmingham, Leeds, Sheffield, Newcastle, Edinburgh, Dublin and Guernsey.
Chairman Hugh Murphy said: “We continue to expand our portfolio by re-investing rental incomes we receive and we were very keen to conclude the agreement for this landmark office development.
“It fits very well with our range of investments and we have been impressed by everything to do with the scheme. It ticks all the right boxes: the location is right, the building is right and the deal is right.
“Clearly there continues to be a healthy level of development in Nottingham and this will complement other properties we own in the city at Castle Wharf and Clumber Street.
“We were looking for another landmark office building with a blue-chip tenant in the city and we are very pleased to be working alongside Miller Birch in bringing this scheme to fruition.”
Work started on site recently and construction is set to be completed by August 2012 when E.ON staff will relocate from the company’s existing base in the city.
