Property fund buys Pride Park site in £14m deal
A 93,000 sq ft building that is part of Derby College’s Roundhouse campus has been sold for £14m.
The Local Authorities’ Property Fund has bought the Johnson Building in Pride Park from Orchard Street Investment Management.
Orchard Street plans to redeploy the proceeds into “more management intensive property elsewhere”, it said, in line with its investment strategy.
Derby College currently pays £850,000 a year in rent for the building, and have fixed rent increases in 2019 and 2024, when it will reach £1.1m. Its current lease runs until October 2029.
Around 600 students use the building, who are mainly studying mechanics and engineering courses.
Gerald Eve partner Nick Ogden, who advised on the deal, said: “With a strong tenant in place, the Johnson Building presented an obvious appeal for its new owner CCLA, who can enjoy good medium-term income streams from this asset.”
Derby College has four buildings in its Roundhouse campus, which was officially opened in 2010. Its Pride Park neighbours include Rolls Royce, Network Rail and Derby County FC.
Orchard Street was advised by Gerald Eve, while Colliers acted on behalf of CCLA.
