Derby based commercial property experts Salloway Property Consultants have achieved a £1,000,000 sale of a high profile training facility investment on behalf of clients Ivygrove Developments.
The premises, located on Royal Scot Road, are leased to Training Services 2000 Ltd - who provide delivery of high quality government funded apprenticeships and associated learning courses.
Marketing was handled by Managing Director, Stephen Salloway who has now seen his involvement in the property run from the original acquisition of the development site, through to the sale of this investment. Mr Salloway expanded:
"Its a great feeling to be actively advising on a property throughout the various stages of it's lifecycle. After the land was acquired, Royal Scot Road became one of the major office and business unit developments on Pride Park.
Nevertheless, by the time we handled the negotiations to lease the premises in 2010, the market was flat and securing a D2 Planning Consent for a training facility was a real coup.
We agreed a lease of the 11,000 sq.ft building with the prospect of income until 2025. Whilst the rent currently set at £8.78 per sq.ft, is less than Pride Park office rents, it does offer real opportunity for income growth."
The investment which produces a net income of £97,500 per annum was acquired by Denby based Garner Properties Limited at an attractive investment yield of 9.2%. The yield generated by the deal lead Mr Salloway to remark:
"With the Tenant having an option to break the lease in 2020, Garner Properties Limited may have the opportunity to re let the premises at office rates, giving a reversionary character to this investment.
When balancing the break option against the potential for Training Services 2000 Ltd remaining in situ until 2025 the investment yield achieved looks to fairly reflect the risks and rewards associated with the opportunity. However, without question £1,000,000 feels good value for what is a significant building in a fantastic location."