Peterborough City Council, advised by Carter Jonas, has acquired the freehold interest in Sand Martin House office building in Peterborough. The property was purchased for £47.378 million, reflecting a net initial yield of 4.75 per cent. Knight Frank advised the vendor.

The 90,017 sq ft building comprises a 5.9-acre site and includes a multi-storey car park and surface parking. The building has a BREEAM accreditation of “Very Good” and an EPC B rating. 

Sand Martin House is adjacent to the newly developed 100,000 sq ft HM Passport Office and within the prime Peterborough redevelopment zone, Fletton Quays, which includes two offices, five residential blocks, a hotel and a cultural and arts centre. 

The council occupies the entire building, having secured a 25-year lease for the space in 2018, with rent reviewed to RPI every five years.

Ali Rana, Head of National Investment, Commercial, Carter Jonas, said: “This acquisition represents a positive investment for the council and the people it serves. The purchase will ensure that the council, which is committed to having its headquarters in the centre of Peterborough, remains in the heart of the city, close to its residents and businesses, whilst having greater control and management over the cost of its accommodation.”

 A spokesperson for Peterborough City Council, commented: "Following approval by Full Council last month, we have now completed the purchase of Sand Martin House. 

"Detailed financial modelling showed that the cost to borrow the money to purchase the building was less than the rental costs for the next 20 years and will additionally provide a saving for taxpayers in the next five years. Purchasing the building also gives us full control of the use of the building.”