Commercial property
Sold Rare Freehold Multi Let Office Investment for Sale - Clarendon House, Clarendon Road, Cambridge

Summary

• An opportunity to acquire a multi let, freehold office building in central Cambridge, in close proximity to Cambridge railway station
• Cambridge is a world famous University city and global centre of excellence for research and development, medicine, business and education. Cambridge is widely recognised as a leading high `technology business cluster and is the heart of one of the most dynamic economic sub regions within the UK
• Three storey office building totalling 23,816 sq ft with an excellent car parking ratio of 1:433 sq ft (55 car spaces)
• Multi let to five tenants on six leases
• AWULT of 4.31 years and 2.58 years to breaks
• Total rent of £657,924 per annum which equates to an overall rate of £27.63 per sq ft
• ERV of £774,021 per annum reflecting £32.50 per sq ft overall
• Passing rents are at a substantial discount to prime office rents in Cambridge which have now exceeded £46.50 per sq ft
• Real asset management opportunities to complete outstanding rent reviews / regear leases / refurbish and maximise rent / rentalise car parking / secure VP for total redevelopment
• Potential to increase massing on the site - infill under croft / add additional floors / consider alternative uses - student / residential / hotel or aparthotel are options, subject to planning
• Our client is seeking offers in excess of £13,000,000 subject to contract and exclusive of VAT for the freehold interest, reflecting a net initial yield of 4.75%, a potential reversionary yield of 5.58% (based on our opinion of ERV) and an equivalent yield of 5.54% (allowing for standard purchaser's costs of 6.67%)
• Low capital value of £545 per sq ft