Sage Group HQ takes shape with £18.3m Cobalt Business Park acquisition

A North East property specialist has facilitated the purchase of a property at a North Tyneside business park as part of a multi-million pound investment in the area.

Avison Young has supported the acquisition of Cobalt 22 at Cobalt Business Park by LCN Euro Property Holdings for a total consideration of £18.3m, its second investment at the business park.

Comprising 78,000 sq ft of Grade A office space over four storeys, Cobalt 22 will be let to Sage Group as part of the professional services firm’s plan to create a £40m headquarters campus.

The news follows the New York-based private equity group’s acquisition of nearby Cobalt 23 for £26.2m earlier this year, also let to Sage Group.

Simon Beanland, principal at Avison Young, commented: “Avison Young were pleased to buy these two contiguous investment properties, which meet the requirements of our client, being well-let to a secure undoubted covenant, Sage Group PLC.”

“Despite uncertainties arising from Brexit and the Covid19 pandemic, these investment deals demonstrate the appetite of UK and overseas property investment companies to buy well-let offices on north east business parks.”

BNP Paribas acted on behalf of the vendor.