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Investment News
John Proctor at FHP’s Nottingham Office has confirmed that they have acted on behalf of the leading property company Development Securities Plc, advising upon the acquisition of Pearl Assurance House which forms a substantial part of the Wheeler Gate and Friar Lane frontages in the heart of the Nottingham City Centre.
The complex which was constructed in the late 1960s/early 1970s comprises four shops fronting Wheeler Gate occupied by HMV, Shuropody, Lakeland and Costa Coffee with return frontage to Friar Lane comprising the entrance into the eight storey office block which over sails the retail element, and the retail units occupied by MSR Newsagents, Johnsons Dry Cleaners and Cancer Research.
It is understood that the property produces an annual income of approximately £1,000,000 per annum with three of the eight floors of offices currently being vacant.
Development Securities Plc intend to invest in the property – particularly the office element which was last refurbished approximately 15 years ago.
It is understood that the property has been acquired for a sum slightly in excess of £9 million providing Development Securities Plc with an initial return of some 9.5% per annum.
The office building currently houses substantial Tenants including Nottingham Building Society, The Lottery Fund and Ashton Bond Gigg Solicitors – it provides some eight floors of open plan offices, three of which are currently vacant.
Development Securities Plc intend to implement a high quality refurbishment to provide offices of a standard more comparable with new build.
John Proctor who advised Development Securities Plc confirmed:-
Wheeler Gate is, and always will be, an integral part of the Nottingham City Centre connecting the Old Market Square with the Broadmarsh and wider retail core.
The offices over have always been popular by virtue of the fact that they provide good quality open plan space with excellent views over the Market Square on one side and Nottingham Castle to the other.
Periodic investment in properties of this nature is needed to maintain their standing within the market and Development Securities Plc have recognised the opportunity which exists here to maintain and strengthen the retail offer and upgrade the offices to provide a high quality, centrally located office building with car parking.
Our Clients see this as an opportunity to provide good quality space into the market which will be available as the economy continues to strengthen.”
Bradley Cassels at Development Securities Plc confirmed:-
“We are committed to investing in good quality assets and look to buy opportunities where we can be pro active, improve the property and by implication enhance the asset value – Pearl Assurance House fits our criteria with Nottingham being recognised as being one of the main provincial retail centres, and the dominant business centre within the East Midlands region.”