Palace Capital brings Berkshire office to market

Palace Capital is selling an office and retail building in Maidenhead, Berkshire. It is looking to secure offers over £10m for 22 Market Street, reflecting a net initial yield of 7%. The 22,586 sq ft asset is being marketed by Colliers. The 21,300 sq ft office is occupied by Hong Kong-based multinational Techtronic Industries Company, while the retail space comprises two units let to All About Cash and Monello Hairdressing. Techtronic re-geared its lease in March to remove a break option and extend the lease by a further three years. In the original lease, signed in August 2021, it took the three floors on a 10-year lease at £33.50 per sq ft. The freehold to the building is being marketed with a weighted average unexpired lease term of 10.99 years to expiry and 10.95 years to break. The office element makes up 96% of the income and provides a term certain of 11.29 years to expiry. The office space, which underwent a £2.3m refurbishment by the landlord in 2020 and tenant fit-out costing more than £1m, holds an EPC rating of B. It offers roof terraces and 79 car-parking spaces, bicycle storage facilities and electric vehicle charging points. The three-storey building carries a total passing rent of £747,374.50 per annum. Palace Capital bought the premises for £10.25m in January last year from Clearbell Capital, with the deal reflecting a net initial yield of 6.83%. ⁠The investor is focusing on a wide-ranging disposal strategy to reduce its debt and LTV. In a trading update earlier this month, Palace Capital said that certain properties are being either marketed or prepared for sale, while other properties are undergoing asset management initiatives in order to prepare them for sale at a future date. To send feedback, e-mail chante.bohitige@eg.co.uk or tweet @bohitige or @EGPropertyNews Image: Colliers View average office rents in Maidenhead >>