Invista - Nottingham, 62/64 Long Row and 77/79 Upper Parliament Street, Nottingham

Date: 01 Mar 2010

Receivers sell £6.85m property in Nottingham for 6.9% yield.

Invista Real Estate Investment Management ("Invista") is pleased to announce the acquisition of 62/64 Long Row and 77/79 Upper Parliament Street, Nottingham on behalf of a client fund. The purchase price of £6,850,000 reflects a net initial yield of 6.9% with the off-market transaction being purchased directly from the receivers.

62/64 Long Row and 77/79 Upper Parliament Street is situated in the heart of Nottingham City Centre and benefits from two street frontages. The building was fully refurbished in 2008 and comprises a total of 34,206 sq ft, with the majority let to Tesco and Netcare VHS Ltd trading as BMI, the largest private hospital group in the UK. The total annual rent is £500,000 with a mixture of fixed and RPI linked uplifts. This income profile results in the yield reverting to 8.15% in December 2013. There is a weighted unexpired term of over 13 years remaining, assuming Netcare VHS Ltd do not exercise their break option (over nine years unexpired otherwise).

Nick Montgomery, Head of UK Commercial Funds at Invista, said: "This represented an excellent opportunity to acquire a very well let asset in an off-market transaction where we see immediate opportunities for asset management through lease regears. We have an ongoing requirement for assets that demonstrate good fundamentals where we believe we can deliver long term value to our client funds."

Lambert Smith Hampton acted for Invista, Fisher Hargreaves Proctor acted for the Vendor.

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