PRAXIS has completed the sale of Derby’s largest office asset to Regional Reit for £20M having successfully leased up 63,000 sq ft during the COVID pandemic.
Praxis acquired the asset in 2016 for £11M when it was let in its entirety to Egg Banking for £1.8M per annum. The anticipated tenant exit of part in 2019 triggered a dilapidations settlement, enabling a £1.5M investment to reposition a former post room/amenity block into a life science proposition, offering a mixture of office and laboratory space alongside a rebrand of the asset.
James Hewitt, Property Director at Praxis, said:
“The onset of COVID coincided with the start of our capital investment programme in Derby. The decision to buck the trend and start on site in April 2020 has been fully vindicated. The final product ticks a lot of boxes. Enhanced ESG credentials, a life science component, indexed linked leases and a diverse line up of tenants unable to ‘work from home’. We are delighted to outperform on another business plan conceived before, but delivered during, the unprecedented market disruption of the past two years.
Finn & Co and Innes England advised on the sale.