A nine-storey office in central Southampton has been acquired by Kingsbridge Estates for £14.1m.
Charlotte Place, which has been acquired from Columbia Threadneedle Investments, comprises an 80,000 sq ft multi-let office investment with a current vacancy level of 22 per cent. The purchase price reflects an initial yield of 7.10 per cent.
The deal followed the completion of a letting to professional training services provider BPP, on a ten-year lease of 5,258 sq ft.
BPP relocated from multi-storey office block Grenville House, a building earmarked for mixed-use conversion and opposite Southampton Central railway station.
Kingsbridge intends to invest in Charlotte Place by extending and upgrading the reception area, increasing amenities in the building and dividing space into smaller suites to let on flexible terms.
"We have exciting plans to reposition Charlotte Place in order to capture demand in a market where there is no competing new-build stock and a dwindling availability of grade-A offices," said Kingsbridge chief executive Chris Fry.
Vail Williams acted for Kingsbridge and Columbia Threadneedle Investments was represented by Knight Frank.
Russell Mogridge, partner in Vail Williams' Solent region, said: "Supply and demand is very much at the fore here – there is a little high-end office space available in central Southampton.
"This situation is likely to become ever more acute because there are no speculative buildings in the pipeline and offices of a lesser quality are being removed from the market through permitted development rights, with commercial space turned into residential or student accommodation."
Jurys Inn Southampton, an on-site hotel with an in-house bar and restaurant, is not part of the acquisition deal.
Source: Insider Media Limited