175,000 sq ft Nottingham office scheme sold
Two of Nottingham’s most iconic office blocks have been sold.
On behalf of investors, CEG has bought City Gate East & West for an undisclosed sum.
CEG says it is now working up plans for a “substantial investment” into City Gate, to “deliver an ambitious refurbishment” and introduce amenities to the building which is home to companies including RSM, Scape Group, Experian, Domestic & General, Nottingham Trent University, Arup and JLL.
JLL acted on behalf of the vendor.
James Keeton from the Nottingham offices of JLL, who worked alongside Ben Kelly in its capital markets team to agree the sale, said: “City Gate East & West, at just over 175,000 sq ft combined, is one of the largest and arguably most iconic office developments in the city centre. Working closely with the sellers, drawing on our market knowledge and experience of occupier trends, we together successfully implemented a strategy to improve the asset and fill the large volume of void space available. This resulted in over 100,000 sq ft of lettings in the 24-month period prior to this latest sale.”
Kelly added: “Alongside the office agency team, we aligned an exit strategy utilising JLL’s in-depth market knowledge both regionally and nationally on investor activity, analysis of market trends and predictions, combined with a strong track record of recent major sales in Nottingham including The Pod & Chapel Quarter, to advise on the appropriate timing, pricing point and target market to deliver a successful outcome, which was duly achieved.
“CEG has a proven track record in delivering large scale refurbishments and further asset enhancement and we are very excited to work with them as joint letting agents to market the ambitious plans they are looking to bring forward at City Gate, creating much needed Grade A space in the city centre.”
Managing the acquisition on behalf of shareholders, Jenna McIntyre, acquisitions manager at CEG, said: “Citygate represents another great addition to our expanding portfolio, with all the hallmarks of a solid investment. We were keen to realise such a rare opportunity to acquire one of the most prominent developments with an enormous amount of potential.”
Antonia Martin-Wright, head of investment – north at CEG, said “We will work closely with the customers located in the building and make improvements to ensure we deliver a flexible, contemporary working environment in which businesses can flourish, with on-site amenities to help attract and retain staff.”
FSP & FHP acted for CEG. JLL for the seller. JLL & FHP have been appointed as joint letting agents on the building.
