Cheadle Royal office sold for £5.5m

Drum Property Group has bought Lakeside 5500 in Cheadle Royal Business Park from Quorum for £5.5m, reflecting a yield of 7.82%.

The sale comes a year after Quorum bought the office from Railway Pension Nominees for £4.4m.

The 26,000 sq ft office is fully let to Micron Europe and Agilent Technologies LDA UK.

The sale was part of a purchase of a portfolio of five properties across the UK for £30.65m, by Drum’s investment arm, Drum Income Plus Real Estate Investment Trust.

DRIP REIT is an income-focused real estate fund targeting regional commercial property assets, principally in the office, retail and industrial.

Bryan Sherriff, Drum Real Estate Investment Management’s investment director, said: “Once we have concluded the purchase of Lakeside 5500 in January 2016, the REIT will continue to target commercial property assets in strong regional locations. With a range of lot sizes between £3 and £9m, and an average initial yield of 7.5%, our current pipeline is ideally placed to exploit the lack of competition for assets in this class.”

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