INNES ENGLAND SECURES A GREAT PRICE FOR SALE OF FORMER EGG BANK
The sale of the former home of the UK’s first online bank, Egg Bank - a 127,975 sq ft call-centre and life-science investment in Pride Park, Derby - has been successfully completed by Innes England.
Sold to Regional REIT Ltd for a value in excess of the £18.6m asking price, the site, known as Orbis 1, 2, and 3, will continue to support its existing tenants in Derby’s most significant business district.
The 7.54 acre freehold site produces a total rent of more than £1.8m per year and has attracted prominent businesses due to its excellent bus links, proximity to Derby train station, and more than 500 car parking spaces.
The site was constructed in 1998 to be the home of Egg, the UK’s first internet bank, which was later acquired by Barclays and Yorkshire Building Society and was one of the seminal businesses in the growth of Pride Park.
Ben Robinson, our head of investment, said: “This site was an attractive investment opportunity for any buyer and we’re pleased to have secured a great price for our client.
“Innes England’s successful letting campaign during the pandemic demonstrated the resilience of the property and location plus the low average rent and lack of good quality space above 20,000 sq ft in the locality will help drive the rental tone going forward.
“As one of the Midlands’ most prominent commercial agents, we know the market inside and out and are pleased to see Pride Park continue to thrive with more strong investment.”
We worked with joint agent Finn & Company and TT&G Partners, which acted for the purchaser, to sell the site on behalf of Praxis Real Estate Management Ltd.
The site is currently let to DHU Healthcare, which provides the NHS 111 service, Firstsource Solutions, which provides customer care to Sky and Virgin Holiday customers, and Tentamus Group, one of the world’s largest life science organisations.
New tenants DHU Healthcare and Tentamus Group have spent a combined £5m on recent fit-outs, demonstrating a commitment to a profitable future to business in Derby.
Stephen Inglis, who represented purchaser Regional REIT Ltd, the real estate investment trust, said: “We’re delighted to have secured the acquisition of one of Derby’s most attractive office assets. This immediately income-generating property will add a further source of revenue to Regional REIT’s diverse portfolio of regional offices.”
Pride Park is widely regarded as one of the most successful business parks in the UK and is home to prominent companies including Rolls-Royce, Geldards LLP, and Handelsbanken.
Matt Hannah, Innes England managing director, said: “Our investment, acquisitions, and disposals services are unparalleled in the East Midlands and we were pleased to secure an attractive buyer for this enviable investment in Derby.
“Earlier this year, our Market Insite report revealed that investment in the East Midland’s so-called golden triangle of Derby, Leicester, and Nottingham reached a record-breaking £2.29 billion in 2021, 71% above the five-year average. It’s an exciting time for the region, for residents, business-owners, and investors.”
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