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Wilky Property Holdings, advised by CB Richard Ellis, have acquired the long leasehold interest in The Sulzer Building, Farnborough for £4.5m.
A prominent local landmark opposite the entrance to the Farnborough Business Park, The Sulzer Building provides approximately 42,000 sq ft (3,900sq m) of offices on six floors, together with 188 surface car parking spaces.
The investment provides an initial net yield in excess of 11.5%. The vendor, Sulzer (UK) Holdings, has taken leasebacks on three floors and approximately 70% of the income is secured on five year terms. Another floor is also let and the remaining two will now be marketed.
Wilky was founded in Farnborough some 60 years ago and Chief Executive Malcolm Young said: “I am particularly pleased to have been able to expand our portfolio by investing in our home town. This building provides a strong medium term income stream and numerous asset management opportunities which fits with our style of being pro-active investors.
“Farnborough’s future prospects are exciting. Farnborough already benefits from excellent road and railway links and Farnborough Airport is aiming to become Europe’s leading business jet airport. Meanwhile, the Government Office for the South East (GOSE) is in the process of designating a sub-region, with Farnborough at its heart. In addition, the town’s retail offer will be substantially improved with the redevelopment of the Queensmead Shopping Centre. The Sulzer Building is strategically located to benefit from these developments and Farnborough’s rise in the business location hierarchy.”
Sulzer were advised by Mellersh & Harding.
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