by Richard Buckley, Editor, Business Eye

Northern Ireland based developer and contractor McAleer & Rushe has exchanged contracts to sell the Brinell Building in Brighton. The company is selling the speculative office development for £39 million, reflecting a yield of 4.


75%, to Orchard Street Investment Management, who has purchased it on behalf of St. James’s Place Property Unit Trust.

 

The building which is due to complete in Q2 2019 will comprise 65,253 sq ft of Grade A office accommodation across seven floors and it has achieved record rents for the city.

Located in the heart of Brighton’s office district, the Brinell Building is a short walk from Brighton Station which directly connects with Central London and Gatwick Airport.  The City has a growing new digital, media and technology sector which has developed alongside a thriving corporate environment.

 

The developement is now fully pre-let to three tenants, Unity Technologies, Diversified and Dehns, which will all relocate from their existing premises within Brighton city centre. Each pre-let transaction topped out at £32.00 per sq ft, a first for the city, with all of the leases agreed for a minimum of 10 years.

 

Angus Monteith, Property Development Director at McAleer & Rushe, said: “We are delighted to have exchanged contracts on the Brinell Building, which has proved extremely popular to both occupiers and investors. The fact that it has been entirely pre-let eight months before completion illustrates not only the quality of the property itself but also of the wider Brighton office market, which continues to go from strength to strength.”

 

Tom Chadwick, Partner at Orchard Street, added: The Brinell Building is a prime addition to the portfolio and upon completion of the development the property will present a fantastic Grade-A office.  We are very confident in the prospects for the Brighton office market given the extremely favourably supply demand conditions as illustrated by the 100% pre-let nature of the building.”

Knight Frank acted jointly with Steerforth Partners for McAleer & Rushe and Jones Lang LaSalle acted for Orchard Street Investment Management.

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