Telereal launches £110m government-let offices sale
Telereal Trillium has instructed DTRE to sell £110m of freehold office buildings let to the government.
Located in London and three South East towns: St Albans, Tonbridge and Lewes, the 14 assets are let to the Secretary of State, operated by the Department for Work and Pensions, on 10-year leases, commencing on 1 April 2018.
They are all job centres with a total floor area of 294,000 sq ft and a combined annual rent of £5.46m.
Telereal Trillium has instructed DTRE to sell £110m of freehold office buildings let to the government.
Located in London and three South East towns: St Albans, Tonbridge and Lewes, the 14 assets are let to the Secretary of State, operated by the Department for Work and Pensions, on 10-year leases, commencing on 1 April 2018.
They are all job centres with a total floor area of 294,000 sq ft and a combined annual rent of £5.46m.
Eleven of the assets are located within Greater London and make up the Bruton portfolio. They are based in Stratford, Ealing, Hendon, Barnet, Kings Cross, Romford, Finsbury Park, Peckham, Canning Town and Barking,
The Stratton portfolio comprises the three South East assets.
The portfolios can be acquired together or separately.
There are no lease breaks and the rents are subject to CPI-linked uplifts at the fifth year.
The packages offer a rare opportunity to acquire a London-focussed freehold portfolio at a low overall capital value of less than £375 per sq ft, and let at an average rent of £18.50 per sq ft.
Telereal Trillium owned and managed the DWP’s estate for 20 years through the Prime property outsourcing contract, which ended on 31 March 2018.
DWP’s delivery of services has changed significantly in recent years and, following a comprehensive review of its estate prior to the end of the Prime contract, the DWP committed to new leases on these 14 core properties.
Graham Edwards, executive chairman at Telereal Trillium, said: “With last year’s sale of the £282m Hayhill portfolio and our acquisition of Network Rail’s Arches portfolio with Blackstone, the sale of the Bruton and Stratton portfolios continues the rebalancing of our investments.
“With the undoubted covenant of the DWP committing to 10-year leases on these 14 assets, and the potential for long-term value enhancement through future redevelopment and lease renewal, we believe these portfolios will be well received by a market currently lacking in quality product”.
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