A fund advised by Brockton Capital has completed the sale of the freehold investment of Martello Court and Dorey Court in Guernsey to an overseas investor for £60.65 million, reflecting a net initial yield of 6.40%.
Savills, JLL and Mourant Ozannes jointly represented Brockton Capital, while the purchaser was advised by Carey Olsen.
Located within Admiral Park in Guernsey, Martello Court and Dorey Court are two of the premier office buildings in the Channel Islands, providing 89,100 sq ft of Grade A office space.
The freehold assets are multi-let and benefit from a strong and diverse income profile with tenants including ABN AMRO, Aon Insurance, Investec Asset Management and Royal Bank of Canada.
Tony Rowbotham, Channel Islands Commercial Director for Savills, said: “Having sold these buildings in 2015 to a fund, advised by Brockton Capital, we are delighted to have worked with them on an asset management strategy over the past four years.
“During that time we have advised on the refurbishment of Dorey Court and let space to Aon Insurance, JTC and Royal Bank of Canada. Investors in the fund have received substantial annual returns and we have delivered a 22% uplift in the buildings’ capital value over the four year time frame.
“The sale demonstrates that the Channel Islands continue to be a location of choice for the savvy investor and Savills has now sold the three largest office buildings to have been offered to the market in the last 18 months, amounting to over £200 million worth of sales across Jersey and Guernsey.”
Max Bassadone, Director at Brockton, said: “We are pleased to announce this off-market transaction which marks the end of a highly successful investment for Brockton ensuring considerable value accretion for our investors. Throughout our investment period, we have successfully delivered our original business plan which included a comprehensive refurbishment of Dorey Court and securing new tenants Royal Bank of Canada, Investec and Aon Insurance, with zero void and achieving a record rent for Guernsey of £43.50 psf.”
A cross-practice team from Carey Olsen advised the purchaser on the deal, led by Property Partner Davey Le Marquand with support from Senior Associates Arya Hashemi and John Le Tissier and Associate Colin Calvert.
Mr Le Marquand said: “Martello Court and Dorey Court are iconic Guernsey commercial properties and we were delighted to advise our client on this transaction. The purchase also underlines the continued attractiveness of Guernsey’s property market as an investment opportunity.”