Solihull office building sold in £10.5m deal

AEW UK REIT has sold Sandford House on Homer Road in Solihull in a £10.5m deal.

The firm bought the building for £5.4m in 2015 and it has been let to the Secretary of State for Communities and Local Government ever since. A new 15-year lease was agreed with the tenant in July who is currently undertaking a major refurbishment.

The sale is due to complete on February 1.

Alex Short and Laura Elkin, portfolio managers of AEW UK REIT, said: “The completion of the sale of this property will deliver to the company an IRR in excess of 20% which, particularly at the current time, highlights the defensive nature of the Company’s strategy.

“Seeking mispriced assets has been a feature of the strategy since IPO and this example demonstrates well how shorter income assets in prime locations can be used to create value for shareholders over the long run.”