19th May 2014 08:29
LONDON (Alliance News) - Development Securities PLC Monday said it had sold Bruges Place, its 16,000 square foot north London office building, in a deal worth GBP6.5 million.
The company did not name the buyer.
The building at Bruges Place is multi-let, producing total income of GBP172,300 a year with a vacancy rate of 42%. In addition to the office space, the building includes 21 flats, occupied on a long-leasehold basis, from which ground rents are collected.
Ground rent is a regular payment made by the owner of a leasehold property to the freeholder, as required under a lease.
Bruges Places was acquired in addition to four other north London properties earlier this year for a combined GBP17.5 million.
"The early sale of Bruges Place, one of the office buildings within the portfolio of projects that we acquired three months ago, will allow us to recycle capital into further development opportunities where we can create value," Matthew Weiner, a director at Development Securities, said in a statement.
"The remaining assets within the portfolio offer good opportunities for residential-led redevelopment and all benefit from strong locations, close to major transport hubs in underground zones 1 and 2 of north London," he added.
Development Securities shares were quoted up 1.7% at 239.00 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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