800 Pavilion Drive is a 51,000 sq ft office building located on Northampton Business Park with 223 car parking spaces on a site of two acres.
In 2013 we put in place a ten-year lease at 800 Pavilion Drive with a break option in 2018. Recognising our ongoing relationship with the occupier we were confident that they would not action the break clause in 2018. We held the asset during this period capturing the upside as the regional office market recovered.
By waiting for the break to pass and securing a five-year term certain, we were able to capture a 54% valuation uplift relative to the valuation prior to the break notice. The sale, to a local authority purchaser, was completed at a 13% premium to the preceding valuation.