Catella Property Consultants - Offices Sale - West Sussex, Burgess Hill, Ericsson Way, Ericsson Building

Date: 02 Jan 2002

Ericsson Limited, advised by Catella Property Consultants, has completed the sale and leaseback of the Ericsson Building, Ericsson Way, Burgess Hill, West Sussex, realising in excess of £19 million in the process. The purchaser is a private overseas client of Andrew Barrs & Co, and Andrew Mayer Associates; the deal reflects a net initial yield of approximately 9%.

The Ericsson Building was developed in various phases between 1986 and 1992 and comprises a combination of offices and research & development accommodation, extending to approximately 14,319 sq metres (154,134 sq ft). The total site area is approximately 5.26 hectares (13 acres) and there are 700 car spaces.

Upon disposing of the freehold interest, Ericsson Limited simultaneously entered into a new full repairing and insuring 12-year lease at a commencing rent of £1,850,000 per annum, equating to approximately £129.17 per sq m (£12 per sq ft) overall. There is provision within the lease for rent reviews at 4 yearly intervals based on 2.5% per annum compound rental increases.

Catella advised Ericsson throughout the transaction.

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