A seven-storey office building in Walsall town centre has been put on the market with a price tag of £1.45m.
Townend House, which is located above Park Place Shopping Centre in Walsall, provides a mix of traditional multi-let office floors and a number of smaller, flexible serviced office suites let on inclusive short-term terms.
The 26,813, sq ft building produces a current rental income of £343,329 per annum against an estimated rental value of £434,347 per annum once fully let.
The property is held on a long leasehold for a term of 99 years from 30 December 1970, expiring 27 December 2069, at a ground rent of £20,000 per annum. The car park is held on identical lease terms at a ground rent of £10,250.
James Mattin, managing director of Bond Wolfe, which has been appointed to market the opportunity, said: “The property has benefited from a significant refurbishment programme since 2005, including replacement of all 417 windows, lift modernisation, a new building management system and refurbishment of WCs and common areas. Common area and WC lighting has been upgraded to sensored LED, as has the majority of the lettable office space.”
He added: “Offers based on £1.45m are sought for the long leasehold interest. A purchase at this level reflects a net initial yield of 22.26%, after the usual purchaser’s costs and ground rents.”
