JLL brings landmark Nottingham scheme to market
In what looks set to be largest investment deal this year
NOTTINGHAM - A rare opportunity has come forward for investors to acquire a major office scheme in Nottingham's business district for circa £16m.
The two buildings, known as City Gate East and West, are situated in a prime and highly prominent position at the top of Maid Marian Way in the heart of Nottingham's office core.
Located just 300 metres from the city's historic centre, Old Market Square, the building is ideally placed to access the cities amenities and public transport infrastructure.
Property advisers JLL, who have been instructed to sell the 175,000 sq ft scheme, have already received strong interest from both international and UK based buyers looking to benefit from the strong income, tenant mix, location, and quality, as well as City Gate's asset management potential.
James Keeton from the Nottingham office of JLL said: "As a pure property play, this ticks every box. It's right in the heart of the business district, has a strong occupancy level and tenant mix of major corporate brands including Regus, RSM, Domestic & General, NTU and the Experian subsidiary, HD Decisions, as well as delivering numerous asset management angles.
"The building boasts one of the largest and most efficient floor plates in the city, being an average of circa 19,000 sq ft with the building majority refurbished also having just over 500 parking spaces, which given its city centre location, is a very high ratio. It's also a genuine landmark in a highly prominent position, which is important for many occupiers.
"The connectivity is excellent too, as the tram and bus routes run right by the site, and it's only 15 minutes from the main railway station. We're confident that the City Gate disposal will be one of the largest investment deal seen in Nottingham during 2018."
Ben Kelly, director from JLL's capital markets team in the Midlands, believes most would-be purchasers will be experienced asset managers, attracted by the potential to further reposition City Gate, building on the recent letting success and generating rental growth.
"In its current condition, it's an attractive place to work and benefits from a great location. Although part refurbished there are further improvements that could be made to the building to help it move forward and achieve its full potential. The average rent is under £11 psf, against current prime rents for the city centre of close to £20 psf.
"Given office supply is tight in Nottingham, with few new schemes coming forward, there will be continuing strong tenant demand for quality office space in the city, which will see scheme like City Gate continue to thrive."