Umbro HQ sold for £8.7m

SKANDIA Property Fund has bought Umbro’s headquarters Lakeside 5000 at Cheadle Royal Business Park for £8.7m.

The 37,296 sq ft property was sold by Phoenix Life in a deal which property agent DTZ said reflects a net initial yield of 7.5%.

The building is let to Umbro for 10 years from June 2009, with an option for Umbro to extend that lease. Rent stands at £689,976 a year, with an annual increase of 2.5% a year. 

Craig Barton, investment director at property agent DTZ, said: “This disposal generated tremendous investor interest from both UK and overseas investors. A combination of a quality building situated on one of the best business parks in the north, let to Umbro/Nike with guaranteed rental growth captured the imagination and proves investor interest has returned for good quality property.”

Developed by Muse Developments, Cheadle Royal Business Park is a 70 acre site containing 500,000 sq ft of office space with leisure, restaurant and hotel facilities.