L&G sells government-let Blackburn office block

Legal & General has sold an office block in Blackburn, Lancashire, to Investmark Group on behalf of an overseas institution for £9.6m. One Cathedral Square provides 29,237 sq ft of grade-A office accommodation and 3,979 sq ft of ground-floor retail space. The six-storey building is on an overriding lease to Blackburn with Darwen Borough Council for 25 years from October 2015. It was built in 2015 and is rated EPC B and BREEAM Excellent. L&G had been seeking offers over £11.53m for the asset, reflecting a net initial yield of 4.3%. It generates a total rental income of £528,896 per annum, which equates to £17.25 per sq ft on the office element. Other tenants in the building include Arriva Rail North, AWH Legal and FedCap Employment, all of which sublet. Planning permission has just been granted for a new office building at Two Cathedral Square, which will complete the final phase of the Cathedral Quarter development. Lewis Ellis acted for L&G. To send feedback, e-mail chante.bohitige@eg.co.uk or tweet @bohitige or @EGPropertyNews Image: Lewis Ellis View other office deals in Blackburn >> See which agents are doing the most deals in Lancashire >>