An overseas investor has acquired Seebeck House at Knowlhill Business Park in Milton Keynes from a UK property company for £7.7m.
The self-contained office building extends to approximately 40,000 sq ft and is single let to EMW Law on a new 10-year lease with a fixed rental uplift in the fifth year.
Charlie Lake, executive director at Lambert Smith Hampton, which acted on behalf of the vendor, said: “This sale reflects a return of investor appetite for well-located regional office assets with secure income. Having previously tested the market, the transaction ultimately benefited from renewed confidence and competitive tension, particularly for assets offering strong covenants and long-term occupational commitment.
“The deal also demonstrates improving sentiment across the regional office investment market, supported by a more favourable debt environment. Lenders are showing increasing appetite to finance high quality office assets at more attractive rates, which is helping to underpin pricing and drive transactional momentum as the year progresses.”
Josh Shaffer, senior associate at Newmark, which advised the purchaser, added: “Overseas investor appetite for regional offices is returning, supported by attractive cash-on-cash returns and an improving debt market. Seebeck House offers a secure 10-year income stream with guaranteed reversion, underpinned by strong occupational fundamentals in a location where Grade A supply is becoming increasingly constrained.”
