A newly refurbished office building at Cleppa Park in Newport has been sold for £3.1m.

Caerleon House, which is let to Carpeo, a business process outsourcing company, on a 15 year lease expiring in 2032, was bought by Savills, on behalf of Albion Investment Partners.

They bought the property from Millgrove Capital Ltd part of the MVJ Group for £3.1m, representing a net initial yield of 11 per cent.

Caerleon House is a newly-refurbished 26,304 sq ft office building at the established Cleppa Park, a business park on the west side of Newport.

The single storey building provides open plan office space.

Ross Griffin, director of investment at Savills Cardiff, said: “We are delighted to have secured this fully-let office building for our clients. It provided our client with an attractive running yield to an expanding tenant. The Newport office market is predominantly out-of-town developments like Careleon House popular with occupiers and investors alike.”

Knight Frank advised Millgrove Capital.

Gareth Lloyd, partner at Knight Frank, said: “With this successful sale our clients have been rewarded for the faith they had in the strengthening Newport office market, having acquired the building with vacant possession, securing the tenant and executing the sale all within 12 months.”