Ownership of a single-let office in the heart of Berkshire’s Newbury has exchanged hands.
Property consultancy Vail Williams acted in the investment sale of the freehold building on behalf of a private property company.
Fairfax House at 20-22 London Road, pictured, is let to Positec (UK and Ireland), a global manufacturing company for robotic mowers, garden tools and power tools.
Ben Duly, an associate at Vail Williams, said: “We were instructed to market Fairfax House on behalf of the freeholder, and, following a comprehensive marketing campaign, a private buyer purchased the freehold property for an undisclosed figure.
“Fairfax House was marketed with a purchase price of in excess of £1m, which reflected a net initial yield of 7.93%, assuming standard purchaser costs of 5.75%.”
He added: “The Newbury office market is incredibly resilient, driven by its strategic location, low vacancy rate and competitive rents and pricing.
“Located on the M4 corridor, Newbury is sought-after for companies looking for office space outside of London and Reading, particularly in the tech, telecommunications and profession services sectors.
“By way of market context, there is only just over 12 months’ supply of office space remaining.”
Grade A office space typically achieves around £21 to £25 a sq ft in Newbury compared to £42.50 – £55 sq ft in nearby Reading, representing “value and growth potential” in Newbury due to limited pipeline supply, Ben commented.
