The Atos Building

Purchased In: July 2021
Detached Headquarters Office Building

Net Initial



Runcorn is a detached headquarters office building of 38,960 sq. ft. situated at the entrance to the established Sci-Tech Daresbury Court within Manor Park.

Project description

The floor plate of c 13,000 sq. ft. is across two wings and three storeys with 252 parking spaces (1:154 sq. ft.).

The property lies on a site of 2.07 acres.

We purchased the freehold interest at a price of £2,750,000, which reflected a net initial yield of 19.90% and £75 per sq. ft. inclusive of costs.

This is significantly less than build cost and considered below VP value. Furthermore, the industrial market has continued to strengthen in this location, providing a viable plan B should the tenant vacate. The property is currently fully-let to Atos IT Services UK Limited, the world’s third largest managed IT security services provider at a passing rent of £579,750 per annum (£14.88 per sq. ft.)
with a lease expiry in April 2023.

Given the entry pricing of this asset we have different options available depending on what the tenant wishes to do; we could invest in the asset alongside the tenant for both partiesnlong term benefit, we could seek a new tenant or tenants if the existing one vacates as the building provides
the flexibility to do so, or we could seek redevelopment. In the meantime, we are obtaining a great return for investors.

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