Heavy investor interest reported in £6.75m Belfast block

There is an extraordinary level of investor interest in River House, a Belfast city centre office building, according to the joint agents, Alexander Kinnaird and Richard Ellis Gunne. The building is being offered for sale at £6.75 million sterling, which would equate to a net initial yield of 9.71 per cent. The 13-storey building is largely let to two government agencies, the Department of Environment and the Northern Ireland Police Authority (PANI). The high initial yield is indicative of the fact that PANI has a break option in 2001. The rental income is £688,000. The building, which was developed in 1971 and has been extensively refurbished, is being sold by owners Friends Provident.

It has a very central location in High Street, between the prime shopping streets around Donegall Place and the Cathedral area, which is undergoing major regeneration. Several interested parties viewed it twice within a week of it coming on the market, according to agents. Guy Hollis of Richard Ellis Gunne said: "There is tremendous interest in the building. There is a real feeling around that the city is about to witness considerable rental growth."