Orchard Street sells Centrium Business Park, St Albans to ING REIM

Orchard Street sells two office buildings at Centrium Business Park, St Albans to ING REIM

Orchard Street Investment Management LLP, the specialist commercial property investment manager, has sold two office buildings (CT2 and CT3) at Centrium Business Park to ING Real Estate Investment Management for £13.38 million, reflecting a net initial yield of 7.54%.

Both buildings are let to Premier Foods Plc for a remaining lease term of approximately 7 years at a current passing rent of £1.07 million pa, reflecting £22.70 psf overall.

Completed in 2002, CT2 and CT3 are well specified Grade A office buildings and extend to approximately 47,016 sq ft in total. Forming the first phase of the development of Centrium Business Park, they are situated adjacent to St Albans Abbey View railway station and the St Albans Retail Park within the City Centre.

Strutt & Parker advised Orchard Street; Knight Frank advised ING Real Estate Investment Management.

Commenting on the sale Gary Felce, Chief Investment Officerat Orchard Street Investment Management said:

"Having acquired the two properties in 2002 on completion of the development, we believe now is the right time to exit as we look to rebalance the portfolio. This latest sale highlights the appetite for well located, high quality office buildings with strong transport links to the rest of the UK."

John Knight, Partner at Strutt & Parker commented:

"St Albans is recognised by investors as a strong M25 office location given limits on office availability and restrictions on new development due to the historic nature of the city centre. Centrium Business Park benefits from modern, well specified Grade A buildings prominently located within the city centre and has subsequently attracted a strong tenant line-up."