Commercial Estates Group (CEG) has bought three office assets in the South of England for £22.775m in total. It has committed a further £10 million to refurbishment projects.
CEG has bought The Octagon in Colchester from Shay Property Investment for £9.025m, reflecting a net initial yield of 12%.
Fronting on to the town’s inner ring road, the 99,000 sq ft building is multi-let to tenants including Abellio Greater Anglia Ltd and MSX International for a combined rental income of £1,109,707 pa.
In Bracknell, Trinity Court on Wokingham Road was bought from DTZ Investors for £7m. Trinity Court comprises three self-contained office buildings totalling 72,000 sq ft and is currently vacant.
Additionally, it has bought The Quorum, Bond Street South in Bristol from Aviva Investors for £6.75m, reflecting a net initial yield of 9.23%. The building totals 66,000 sq ft and is occupied by tenants including Echo Managed Services Limited and Planglow Limited at a passing rent of £407,423 pa. Around 26,190 sq ft of space is currently vacant and covered by a vendor’s rental guarantee.
James Emans, associate director in the investment team at Savills, said: “These acquisitions offer our client a range of asset management opportunities, combined with some sustainable income from a number of high profile tenants. We are pleased to have advised CEG on more than £32 million of investment, including the capital committed to refurbishment projects.”
Whitmarsh Holt Young acted for Shay Property Investment, Strutt & Parker and Haslams acted for DTZ Investors and Colliers International acted for Aviva Investors.
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