Cording Danmerc, part of the Cording Group, has announced the Government has agreed to a £16 million purchase of the freehold interest of Vulcan House (Iron) in the Sheffield’s Riverside quarter.
The 75,610 sq ft office space has been held within a Cording Group client portfolio and has been occupied by the Home Office since its completion in 2007. The Home Office occupies under a number of leases, all of which had break clauses.
Commenting on the sale, Mark Millar head of portfolio management at Cording Group said:
The sale is a continuation of our strategy to selectively sell assets on behalf of clients where we have completed asset management strategies. We are pleased in this instance to have been able to conclude a sale to the occupier. The Government have a strong presence in the city and it makes sense for them to be in control of this part of their estate.
We continue to invest in the office sector and are actively looking at some of the main regional cities again. While we don’t believe that occupier activity is set for an upturn in the immediate future, there are selective centres where rents appear to have ‘bottomed out’ and yields are looking attractive as an entry pricing point.
We follow a research based approach and are alert to the fact that there are significant differences in the supply dynamics of the individual regional markets and therefore a need to be selective. Some cities have a considerable way to go before there will be improvement in market dynamics. However, the regional markets are beginning to look fair value relative to the risks and we are being offered some very interesting opportunities in some of the key markets.
The sale of the Vulcan House (Iron) freehold was managed by Knight Frank, which advised the vendor, and DTZ which acted for the Home Office.