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Circle Property PLC on Wednesday said it has exchanged contracts to sell Somerset House in Birmingham for £15.2 million.
Circle Property is a London-based buyer, developer and manager of regional office assets in the UK.
Somerset House, a refurbished city centre, mixed use property, has been sold to Somerset Land & Property Ltd.
Circle Property noted that Somerset House comprises 38,805 square foot of office space let to BE Group Ltd and 10,956 square foot of leisure accommodation let to Las Iguanas Ltd and Camerons Brewery Ltd, with two leases of around 13 years to expiry and total rent passing of about £1.2 million per year.
It was acquired Circle Property in January 2016 for £7.8 million. The sale price therefore represents a nearly 100% uplift on the initial purchase price, but a 16% decrease on the building’s March 31 valuation of £18.1 million.
The net proceeds from disposals, following completion, will be held as company cash. The board expects that a minimum of two returns of capital will be made to shareholders, the first of which is expected by March 2023.
The sale of the property is expected to be complete by the end of February, 2023.
Shares in Circle Property were up 1.8% to 216.90 pence each in London on Wednesday afternoon.
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