Peterborough City Council bought the freehold interest in the Sand Martin House office building in the city or £47.378 million, reflecting a net initial yield of 4.75%. The council occupies the entire building, having secured a 25-year lease for the space in 2018, with rent reviewed to retail price index every five years.
The deal won sale/acquisition of the year for East of England in CoStar's Impact Awards.
The 90,017-square-foot building is on a 5.9-acre site and includes a multistorey car park and surface parking. The building has a BREEAM accreditation of Very Good and an EPC B rating.
Sand Martin House is next to the newly developed 100,000-square-foot Passport Office and in the Fletton Quays redevelopment zone, which includes two offices, five residential blocks, a hotel and a cultural and arts centre.
About the Project: Peterborough council acquired the asset because it effectively allowed them to extinguish their long-term lease liability, provideing a considerable long term saving for the city, This is a positive impact story, particularly against a backdrop of other councils who have fallen into trouble and with the provision of services at risk.
Ali Rana, head of national investment, commercial, Carter Jonas, said in a statement: "The purchase will ensure that the council, which is committed to having its headquarters in the centre of Peterborough, remains in the heart of the city, close to its residents and businesses, whilst having greater control and management over the cost of its accommodation.”
What the Judges Said: Steve Norris, chairman, Soho Estates said: “This was a very good example of a council optimising its financial exposure and creating real value in the process.” Chris Jones, director, BCR Infinity Architects added: “This sale/acquisition is key for the local community and its council and provides a long term, sustainable and easily accessible solution for key local public services." Jamie Garrett, director, Wrenbridge, said he chose this project “due to the positive impact of the sizeable investment to the local area".
They Made It Happen: Ali Rana, head of national investment, Carter Jonas; Huw Holman, partner, specialist property investment, Knight Frank.
