BT site snapped up in £15m deal
West Bromwich's BT Building has been bought for £14.86m by Invista Foundation Property Trust.
Invista had already paid a £750,000 deposit for the site, and completed the acquisition with a £14.1m payout reflecting a net initial yield of 7.63 per cent.
The site comprises a 75,000 sq ft of office space. It is let for 15 years without break options to BT, which will become Invista's largest tenant paying a rent of £1.2m per year.
This adds up to 4.72 per cent of the company's total portfolio rental income.
Property agent Knight Frank has valued the site upon completion at £18.9m which reflects a net initial yield of 6 per cent and represents a 27 per cent increase relative to the purchase price.
Invista said: "Following the acquisition, the company's gearing continues to be well controlled, with a net loan to value ratio of 42.3 per cent, after netting total cash of £25.1m, of which £15m is outside the security pool charged to the group's lenders."
