Preston-based Maple Grove Developments, part of the Eric Wright Group, has pre-sold its 32,000 sq ft office building in the new Blackburn Cathedral Quarter to Legal & General Property for £9.1m.
That reflects a yield of 4.6 per cent.
One Cathedral Square will be the first Grade A office building completed in Blackburn town centre for 20 years.
The office building, One Cathedral Square, is let to Blackburn with Darwen Borough Council on a 25 year head lease.
The council will not take occupation directly. Instead it will let the Offices to businesses looking for Grade A Office space to meet their occupational requirements.
Agents for the development are Knight Frank and Trevor Dawson and Co. The building forms part of a wider first phase at the Cathedral Quarter development comprising a Premier Inn, restaurants and cathedral accommodation arranged around a new public square and transport interchange.
Work on the project, which received assistance from Lancashire LEP, HCA, Blackburn with Darwen Borough Council and the European Regional Development Fund, is scheduled to complete this autumn.
The asset has been acquired by Legal & General Property on behalf of its LPI (Limited Price Inflation) Income Property Fund.
Launched in 2010, the LPI Fund offers Defined Benefit pension schemes an innovative way to invest in property with secure, primarily government backed, inflation-linked sources of income.
Andrew Dewhurst, director of Maple Grove Developments, said: “One Cathedral Square will be the first Grade A office building completed in Blackburn town centre for 20 years.
“The transformation of this part of the town centre is now becoming a reality.”