A private investor has bought Godalming Business Centre from Federated Hermes for a price in the region of £5.1m, in a deal that represents an initial yield in excess of 12%.
Federated Hermes acquired the 28,830 sq ft business centre, which sits on a 1.86-acre site to the east of Godalming town centre, in 2017 for £9.5m. The company initially put the business centre on the market in 2022 seeking offers in excess of £8,111,000. Following the failed sale to a property company, Federated Hermes put the site back on the market in October last year seeking offers in excess of £6,470,000.
The asset comprises eight modern self-contained office units let to seven tenants. It benefits from a WAULT to expiry of 5.51 years and 2.87 years to break. The vacant unit at the park is currently being marketed at a rent of £26/sq ft.
The site has a medium-term redevelopment potential and could be converted to care or residential uses, subject to receiving necessary planning consents.
The private investor was advised by Colliers and Federated Hermes was advised by TT&G. P10 Financial Group arranged the financing.
