Ailsa House, LeedsProperty:Modern AC offices
Area:27,000 sq ft
Purchase Price:c. £1.6m
Claymore Role:Acquisition, Co-investment & Asset Management
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Acting on behalf of Hong Kong based private equity investors, Claymore acquired this 27,000 sq ft office investment in March 2015 for c.£1.6m, reflecting a net initial yield of 21.0% pa (£63 psf). The property is fully air-conditioned and is in an excellent location approximately 0.5 miles from the M62 and was part let to the Secretary of State and Compass Group who were not in occupation. Since acquisition, the Secretary of State lease has been restructured to extend the lease and add further accommodation. The Compass Group lease was surrendered with the payment of a substantial dilapidations’ payment and the vacant space refurbished and subsequently let to VP plc and Lovell Partnerships.
The low entry cost of this acquisition allowed Claymore flexibility in quoting terms to deliver full occupancy of the remaining floors and to significantly enhance capital value.