Investors hungry for more as four Milton Keynes offices sold
Investors’ appetite for good quality office space in the M1 corridor region shows no signs of slowing down, according to chartered surveyors Kirkby Diamond.
Nick Bosworth, commercial agency surveyor at Kirkby Diamond in Milton Keynes, said keen investors are snapping up four new offices shortly after they come on to the market.
The agency recently completed the sale of Silverstone House, a 4,766 sq ft three-storey office building in Newport Road, Woolstone, negotiating a 13% increase over the asking price of £750,000
It also sold 1 Radian Court, in Knowlhill, within a month – achieving close to the £1.5 million asking price.
The fully refurbished, two-storey building attracts a rental income of £105,000, representing a yield of 6.75%.
Nick said the sale of two freehold offices at 1 and 2 Whittle Court, Knowlhill, was also agreed within two weeks of going to the market.
The buyers, local owner-occupiers, paid the asking price of £700,000 for the two buildings, which were offered as vacant possession.
The buildings, which provide 2,095 sq ft and 2,141 sq ft of office space respectively, provide an excellent opportunity for the new owners to maximise their return on their investment
Nick said: “There’s a particular shortage of freehold office premises coming on to the market, mainly because the ownership structure of most offices in Milton Keynes are fund-owned rather than individually owned. This means it is very unusual for them to sell properties with vacant possession.
“In these instances, the lack of available stock and an increase in demand from owner occupiers has buoyed up the market.”