Aston Property Ventures has completed a GBP2.35m deal with the acquisition of Redmond House in Peterlee.
The 33,422 sq ft modern office building has been acquired on behalf of Castel Commercial Property Fund, a specialist investment fund which invests across the whole spectrum of commercial properties and off-plan development opportunities.
The contemporary office space is arranged over ground and one upper floor, and has 113 on-site car parking spaces. The property is currently let to Redde Plc on a 15-year full repairing and insuring lease expiring March 2020.
Richard Bousfield of Aston Property Ventures says: “We have secured this asset for the Castel Commercial Property Fund, off-market, and we consider the price to be very attractive when compared to other on market transactions. We expect to asset manage the property to deliver very attractive risk adjusted returns.”
The property offers an income yield of 15 per cent on equity invested and is expected to generate over 20 per cent internal rate of return over the hold period.
John Greenwood, CEO at Creechurch Capital Limited, master distributor for the Castel Commercial Property Fund, says: “We were quick to identify the value that could be gained from commercial property deals in the regions. The fund’s agile and innovative approach allows it to take advantage of major investment opportunities that may not typically appeal to larger institutions. Through this, we ensure the right level of liquidity within the fund and the best possible returns for our investors.”
BCM and Baron Associates advised the purchaser and DWF LLP provided legal advice. Jackson Criss acted for the vendors, Allois Properties.