Office development makes £5m profit - commercial mortgages

11 October 2007

The Octagon office complex in Colchester has been sold for £19 million just a year after it was purchased for £14.6 million, it has been revealed.

The East Anglian Daily Times has reported that owner Wrenbridge has managed to let all available space in the building as well as increase the average amount of rent per square foot, indicating the returns available to firms with commercial mortgages.

In September 2006 the average rent was £12.50 per square foot and has now risen to £15.50, the paper notes, leading to a rent roll increase of some 85 per cent.

"As specialists in the market, we had confidence in the occupier demand for this building and location, whilst others considered it unlettable," commented Chris White of Wrenbridge, according to the EADT.

"We have been able to regear existing leases, refurbish common parts, improve environmental performance and, most importantly, attract new occupiers to the town,

"We continue to look for opportunities in locations with similar dynamics," Mr White added.

Office rents in London continue to outperform the rest of the UK, according to recent analysis.