£19.5m for BT office building in West Brom
THE BT office building in West Bromwich has been sold for £19.5m. The purchaser hasn’t been announced.
Invista Foundation Property Trust has exchanged contracts to sell its office property, let to British Telecommunications, for a sum that reflects a net initial yield yield of 5.8%.
The property is a newly completed office development – the first in West Bromwich for many years – which IFPT committed to buy in February 2010 and subsequently acquired in October 2011 for £14.86m.
The building, also known as All Saints, is close to the M5 motorway junction and West Bromwich town centre and was developed by Birmingham’s Stoford. It did so in collaboration with Sandwell Council and regional development authority Advantage West Midlands, which put £11m into the project.
It is let to BT for 15 years with effect from 21 October 2011 at a rent of £1.2m per annum with fixed uplifts of 3% per annum.
Invista’s Duncan Owen said: “We are pleased to realise a significant gain over the acquisition cost. The property benefitted from the new letting on a long lease, which is fashionable in the current market and therefore attracted a premium pricing.”
