Three large commercial investments let on long leases to government tenants will be among the lots on offer at Savills’ residential sale next week.
The most expensive is Blackburn House in Norwich, Norfolk, guided at £1.5m-plus (pictured above).
The 9,000 sq ft block is let to Trillium, on assignment from the Secretary of State for Work and Pensions, until 2030.
The building produces £164,000 pa and is underlet in its entirety to retailer Cotswold.
Also on offer are two office buildings in North Yorkshire, let to the Secretary of State for Communities and Local Government for 10 years from 1 April 2018, with tenant-only breaks in 2023.
They are Theatre Buildings in Billingham, a 7,000 sq ft office building producing £57,000 pa, guided at £600,000-plus; and Portland House in Redcar, a 10,000 sq ft block producing £75,000 pa, guided at £800,000-plus.
Robin Howeson, director, said: “Many more residential buyers are wanting to buy commercial now and lock their money away. They want to diversify because of the tax and lending situation for buy-to-let.”
The largest lot on offer in the catalogue is a residential or mixed-use conversion opportunity on Peckham High Street, SE15, guided at £2.25m.
The part-vacant 12,000 sq ft building currently produces £27,000 per annum expiring in November this year, outside the Landlord and Tenant Act. The tenants are a takeaway restaurant and nightclub.
Larger lots also include land at Pottery Quarry, Plymouth, Devon.
The vacant 1.74 acres site on the banks of the River Tamar has a lapsed planning permission for a mixed use development of 73 homes and 100 sq m of commercial space.
The 9 May sale will take place at the Sheraton Grand Hotel, W1.
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