Catella APAM (“APAM”), the specialist UK real estate asset and investment manager, has completed the off-market acquisition of Ventana House in Sheffield city centre for £14.65M.
Totalling 49,500 sq ft, the building forms part of the successful Sheffield Digital Campus office development situated directly opposite Sheffield Railway Station. The property is fully let to four strong tenants, including Sky UK Ltd and Kennedys Law, with a WAULT of 6.1 years to breaks. The property has a low average passing rent reflecting £20.46 per sq ft.
The purchase is APAM’s second on Sheffield Digital Campus following the acquisition of the neighbouring building Acero in 2018.
Chris Taylor, Director at APAM said: “We are delighted to complete the off-market acquisition of Ventana House in partnership with one of our South African private clients.
APAM’s confidence in the Sheffield market was justified following our purchase of the newly developed Acero with 40% vacancy, where we were able to swiftly achieve full occupancy, setting new prime headline rents for Sheffield. The market fundamentals have only continued to improve with prime rents forecast to exceed £27 per sq ft for the much-needed speculative Grade A offices starting on site this year.
The acquisition of Ventana provides an attractive combination of secure income and multiple asset management opportunities to capture growth over the short to medium term. We look forward to leveraging our local knowledge and expertise to add value.
The acquisition marks the eighth acquisition for this programmatic joint venture targeting core-plus regional assets. APAM and our partners are actively seeking core-plus and value add opportunities across the risk spectrum in key UK markets, focusing on lot sizes ranging from £10M to £200M.”
Richard Peacock, Fund Manager of Kames Property Income Fund said: “After the successful completion of our asset management initiative to de-risk this asset by removing the break option from BSkyB’s lease, it was a logical time for the fund to exit the property and focus on our two remaining office holdings in the city.”
APAM was advised by CBRE; Knight Frank acted for the vendor.
An article from Costar covering this story can also be read here: costar.com