- What Ship Street and Adapt have acquired Nottingham One
- Why Second buy for their new regional office fund
- What next Paying £9.2m for the 54,000 sq ft asset
Hong Kong investor Ship Street Advisors and Adapt Real Estate, the UK regional asset manager, have acquired an asset in Nottingham city centre for £9.2m.
The deal for the Nottingham One scheme, which is the second for their UK Regional Office Partnership II (UKRO II) fund, represents an initial yield of 7.51%. The deal is for the long leasehold interest in the building.
Comprising 54,000 sq ft of fully let office space, Nottingham One generating a passing rent of £739,688 per annum. It is situated in a waterside position in Nottingham’s Southside district. The retained ground rent element will be offered to the market later this year.
James Taylor, Director at Adapt Real Estate, said: “This is the second acquisition for UKRO’s second partnership, and takes UKRO’s total investment in regional city centre markets to in excess of £125m. It is also our second acquisition in Nottingham, having acquired the Axis building last November.”
Savills represented the vendor, Select Group; FHP Property Consultants advised Adapt and Ship Street.
Victor Ktori, head of office at Savills Nottingham, said: “We are very pleased to have secured the sale of this landmark city centre office investment, especially within the current climate. Nottingham’s fundamentals remain strong and the city has received interest from both domestic and overseas investors who are looking to capitalise on this in order to acquire assets that generate strong returns and also provide future re-positioning potential.”
Mark Tomlinson, Director at FHP, adds: “This asset provides opportunity for rental growth given the almost chronic under supply of quality office space in Nottingham City Centre.”