Member Article

Praxis acquires three Cobalt office buildings in £11.5m deal

Three office buildings at Newcastle’s Cobalt Business Park have been acquired by Property investor Praxis, adding to the company’s £500m UK portfolio.

Praxis purchased the assets out of administration for £11.5m, equating to a net initial yield of 11.3%.

The three office units at Cobalt 7A, 7B and 8 comprise a total area of 81,701 sq ft and are situated on a 4.5 acre site. Current occupiers of the buildings include G4S and Formica, with one unit currently vacant.

The business park extends to over 1.6 million sq ft of office accommodation plus associated amenities and is currently 83% occupied. Over the past year, 180,000 sq ft of office accommodation on the site has been let with a further 50,000 sq ft under offer and the overall tenant line-up includes Accenture, Santander, Balfour Beatty and the NHS.

Gary Roberts, Director and Head of Capital Markets at Praxis, said: “This acquisition highlights our understanding of discreet market fundamentals and our ability to identify specific opportunities within those markets where the appeal to occupiers can be increased.

“We will continue to deploy capital where we are able to employ our considerable in-house asset management capabilities to reposition under-performing or non-performing assets”.

Finn & Company acted for Praxis and GVA acted on behalf of the vendor.

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