First Property (FProp) has bought the St Mark’s Court office building in Horsham, West Sussex from BMO Real Estate Partners for £28m.
BMO put the 144,897 sq ft office block on the market earlier this year with a £25m price tag. The transaction reflects a 6.7% yield.
St Mark’s Court has planning consent for conversion of the office space into 202 residential units under permitted development rights (PDR).
The five-storey building, which is split into two wings connected by a bridge, is let to Royal & Sun Alliance Insurance until 2025 with a tenant’s break option in 2023.
St Mark’s Court generates rent of around £2m per year and part of the space is sublet to three different tenants.
The property, which also includes 444 car parking spaces, is in the town centre, around 500m away from Horsham railway station. The town is 14 miles from Gatwick Airport and less than an hour by train from London Victoria and London Bridge.
Hanover Green advised FProp. Knight Frank and SHW represented BMO.