Lincoln-based PAI member Banks Long & Co have revealed that, working jointly with Lambert Smith Hampton, they had sold the freehold of Hestia House in a deal worth more than £4m.
Hestia House, which lies off Ruston Way, is adjacent to the Lincoln Science & Innovation Park and the 26,331 sq ft building is entirely let to the Barbon Insurance Group Ltd.
Lincoln Science & Innovation Park Director Tom Blount said: “As a business local to the building, we are confident that this part of Lincoln is on the up. Therefore we have real confidence in the potential for this as an investment property.”
Mr Blount said this property is on land which adjoins Phase 2 of the Science Park and it will allow it to sympathetically develop whilst causing as little disruption as possible to the sitting tenant.
“As a site specific developer, we are always interested in properties near our main site but, on the whole, our mission is to regenerate our site, rather than take on additional investment properties.”
Barbon Insurance Group’s lease on the building runs until 2027.
“We would obviously like to work with the tenant to help them consolidate their base in Lincoln and support local employment. We look forward to working with the company long into the future,” added Mr Blount.
Lincoln Science & Innovation Park is a joint venture business owned by Lincolnshire Co-op and the University of Lincoln and is focused on creating an environment for high-growth businesses and new employment opportunities.
Banks Long & Co, who jointly marketed Hestia House with Lambert Smith Hampton, invited offers of more than £4m for the freehold.
Banks Long & Co Director William Wall said: “As expected, the joint agents were able to generate a high level of interest in this opportunity due to the security of income, fixed uplift and key strategic location.
“Following a round of best and final bids, the eventual sale price equated to 6.49 per cent Net Initial Yield.”
“Lambert Smith Hampton Director Sam Elkington said: “Having sold the building originally to Castle Square Developments and then acted for them in the ongoing management of the building during their ownership, it was satisfying to be involved in the sale of the building.
“There was good interest and demand for the building on both a local and national level, but again it is pleasing to have helped secure a local buyer for the property.”
Banks Long & Co and the Lincoln and Birmingham offices of Lambert Smith Hampton acted on behalf of Hestia House’s owner Castle Square Developments.
Castle Square Developments Finance Director Matthew Karran said: “We are pleased that the property has been acquired by LSIP as it will form an important component of their vision to regenerate this area of the city.”
Pictured (left to right): Banks Long & Co Director William Wall, Lincoln Science & Innovation Park Director Tom Blount and Lambert Smith Hampton Director Sam Elkington outside Hestia House