January 13, 2017
Palmer Capital are delighted to announce the acquisition of Dearne House, Cortonwood Business Park, Rotherham for £5.25m, reflecting a net initial yield of 6.75%.
Acquired for the Palmer Capital Income Fund and securely let to The Royal Mail Group Limited for a further 13 years with fixed uplifts. Dearne House comprises 51,671 sq. ft. of modern office accommodation.
The property will benefit from being located directly opposite Aberdeen Asset Management’s new development of the open A1 Cortonwood shopping park. This 7 acre site will include tenants such as M & S, River Island, New Look and H&M. Other neighbouring occupiers include Morrisons, Asda Living, BBQ, TK Maxx, Boots, Next, Argos and Matalan.
The property represents one of the few remaining business space users at the park therefore affording Royal Mail superb local amenities and the fund with a strong residual value position at the end of the lease.
Rupert Sheldon, Fund Manager at Palmer Capital commented:
“Dearne House is a perfect match for the Palmer Capital Income Fund, offering a secure and progressive income stream together with RPI rental uplifts and very strong underlying residual values. We have significant funds available for other similar investments.”