Albany Court is let to O2 parent Telefonica. Credit: via AY

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30 July 2024 10:10 Neil Tague Comments (0)

An 11,775 sq ft building, used as an O2 switching centre, has been acquired from the Canal & River Trust with five years remaining on its lease.

The capital markets team at Avison Young’s Newcastle office acted for the Trust, which had held the Albany Court building as an investment property. MHPI represented the buyer.

The property is described as a modern switch centre building let to O2 parent Telefonica UK for a term of 15 years from 2014, with 5.47 years unexpired. The tenant has invested “significantly” in the site.

C&RT’s freehold interest in the property was sold for £2.22m, reflecting a net initial yield of 7,04%.

Jamie Sim, associate at Avison Young, said: “Having previously acquired the property for Canal and River Trust we were delighted to be asked to advise on the sale.

“The asset has performed well for our client, providing secure income from a strong covenant with attractive RPI rent reviews.”