23rd Apr 2014 09:43
LONDON (Alliance News) - McKay Securities PLC said Wednesday it has acquired the freehold of The Mille in Brentford from Forthright Property Investments Ltd, clients of Helix Properties, for GBP19.30 million.
The real estate trust which focuses on the south east and London, said the freehold purchase of The Mille, 1000 Great West Road, Brentford, London, a building comprised of 96,650 square ft of office floor space over 11 floors, is located on the south side of the elevated section of the M4 motorway.
The building is currently let to 17 tenants generating a rental income of GBP1.02 million per annum, with rents varying from GBP13.50 to GBP20.00 per square foot. There are currently eight vacant suites totalling 15,725 square feet. Advertising hoardings and roof top masts generate an additional GBP180,950 each year, said the company, taking the total income from the building to GBP1.20 million each year.
Included with the purchase is a site next to the property let separately as a car rental facility and a stand alone advertising tower, generating additional income of GBP370,000 per annum.
The combined rental income of the building, advertising tower and car rental facility is GBP1.57 million each year, providing an initial yield of 7.7%.
"The building has excellent potential to benefit from the increasing rental values that have already spread beyond the West End to Hammersmith and Chiswick. The rent differential between these markets and Brentford is at an all time high. We believe this gap is likely to close as more companies compete for limited space, which will drive rental growth," said Simon Perkins, Managing Director of McKay.
Looking ahead the firm said it is "continuing to assess further acquisition and portfolio opportunities."
Shares in McKay were trading marginally higher Wednesday morning, up 0.18% at 211.25 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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