City office site Lateral sold
A MAJOR city centre office development, which went into receivership, has been bought in a £24.25m deal.
DTZ, acting as Law of Property Act receivers, has sold Lateral in Leeds to German fund manager RREFF.
Receivers Bryn Williams and Philip Glenn were appointed by Lehman Brothers on behalf of Oregan Financial Trust Services earlier this year.
The price reflects a net initial yield of 7.81%.
The 96,960 sq ft property, constructed in 2005, is presently let to The Secretary of State for Communities and Local Government under two leases, taken by the Highways Agency and the Government Office for Yorkshire and Humber.
The property provides a total rent roll in excess of £2m a year.
James Lawlor, associate director in DTZ’s Leeds investment team, said: “Although the regional commercial property investment markets remain challenging, the disposal of Lateral highlights that demand does exist from a number of different purchasers for the correct product and it represents one of the most significant office investment transactions in the region in 2011.
“The sale also signals the culmination of DTZ’s long-standing involvement with Lateral having pre-let, sold and property managed it at the time of its development and our appointment as LPA Receiver and investment agent earlier this year.”
Oregan paid around £38m for Lateral in 2006.
Montagu Evans advised RREEF.
