An overseas investor has purchased Seebeck House on the Knowhill Business Park in Milton Keynes from a UK property company for £7.7 million.
Seebeck House is let on a single lease to EMW Law LLP for 10 years with a fixed rental value uplift in the fifth year. The office comprises approximately 40,000 sq ft.
Lambert Smith Hampton acted for the vendor whilst Newmark advised the purchaser.
Charlie Lake, executive director at Lambert Smith Hampton, said: “This sale reflects a return of investor appetite for well-located regional office assets with secure income. Having previously tested the market, the transaction ultimately benefited from renewed confidence and competitive tension, particularly for assets offering strong covenants and long-term occupational commitment.
“The deal also demonstrates improving sentiment across the regional office investment market, supported by a more favourable debt environment. Lenders are showing increasing appetite to finance high quality office assets at more attractive rates, which is helping to underpin pricing and drive transactional momentum as the year progresses.”
EMW Law LLP sold the building to the current vendor in 2015, having been in occupation since its original construction.
Josh Shaffer, senior associate at Newmark, said: “Overseas investor appetite for regional offices is returning, supported by attractive cash-on-cash returns and an improving debt market. Seebeck House offers a secure 10-year income stream with guaranteed reversion, underpinned by strong occupational fundamentals in a location where Grade A supply is becoming increasingly constrained.”
Image: Lambert Smith Hampton
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