On behalf of McKay Securities PLC, the Real Estate Investment Trust specialising in South East and London office and industrial property, Colliers International has completed the freehold acquisition of Ashcombe House, Leatherhead from a private investor for £4.36 million, representing an initial yield of 7.4%.
Ashcombe House is a town centre office property comprising ground and two upper floors totalling 17,340 sq ft. The building is fully let to four tenants, with an annual rent of £340,415 (£19.63 psf). The weighted average unexpired lease term is 8.8 years (3.8 years including breaks).
Simon Perkins, Managing Director of McKay, commented: “This is an attractive office building in one of the main commercial centres of the southern M25 office market. The property has been let during the economic downturn at low levels. We are confident that the building provides scope for rental growth with active management in an improving occupier market.
Following our successful capital raise last month of £87 million, we are planning on making a number of acquisitions to add to our existing portfolio (which currently totals £236 million). This is our first purchase since the capital raise and we continue to target further properties that offer the potential to grow rental income and capital value. “
Colliers International acted for McKay Securities PLC. BNP Paribas acted for the vendor.