Newham council buys Redhill offices

By Paul Norman - Monday, September 04, 2017 15:00

Newham council has bought 61-63 London Road, a multilet office in Redhill in Surrey for £25m, a circa 5.5% yields, CoStar News understands.

Market sources this week said the 51,839 sq ft building has been bought from Savills IM and Canmoor advised by DTRE.

Savills IM and Canmoor have recently completed a comprehensive redevelopment of the building which is let to Travelers Management and PSA Finance UK on FRI leases

The building, over ground and three upper floors, has an unexpired lease term of 12.38 years to expiry and 9.79 years to break.

Total current rental income is £1,470,641 per annum with an verage passing rent of £28.75 per sq ft with prime Redhill rents of £31 per sq ft.

Savills IM and Canmoor, advised by DTRE, bought the offices in February 2015 for £11.8m, from an undisclosed vendor before carrying out a significant refurbishment.

DTRE advised Savills IM and Canmoor on the sale to Newham while Steerforth Partners advised Newham.

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