Office complex sold-on at £5m profit

ONE of the most prominent office buildings in north Essex has changed hands for the second time in little more than a year - with price increase of more than £5million.

ONE of the most prominent office buildings in north Essex has changed hands for the second time in little more than a year - with price increase of more than £5million.

Wrenbridge, which purchased the Octagon in the centre of Colchester for £14.6million in September 2006, has now sold it on to Shay Properties Investments for £19million.

At the time of last year's deal, around 35,000 sq ft of space within the 96,000 sq ft building was vacant, with the space let generating a top rent of £12.50 per sq ft and the average unexpired term standing at 2.4 years.

Over the past year, Wrenbridge has let all of the vacant space, to a further five tenants, increased the average unexpired term to over five years, and achieved rents of £15.50 per sq ft. As a result, the total rent roll has been increased by 85% to more than £1.35million.


You may also want to watch:


The sale of the Octagon - where tenants include train operator One, Towergate Insurance, Colchester Primary Care Trust and Atkins - represents the first disposal for the £175 million Palmer Active Value Fund II.

Chris White of Wrenbridge said: “This asset represented an ideal acquisition for the Palmer Active Value Fund II and provided a number of asset management opportunities to enhance value.

Most Read

“As specialists in the market, we had confidence in the occupier demand for this building and location, whilst others considered it unlettable.

“We have been able to regear existing leases, refurbish common parts, improve environmental performance and, most importantly, attract new occupiers to the town, which has increased rents to £15.50 per square foot. We continue to look for opportunities in locations with similar dynamics.”

Wrenbridge is now pushing ahead with development of the 28,000 sq ft Square, Colchester's first speculative office build for over 10 years. The property, located directly opposite the Octagon, is due for completion in December this year.

Awbery Morris acted for Wrenbridge at the Octagon. Newman Commercial and Lambert Smith Hampton are letting agents at the Square.

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter
Comments powered by Disqus