A property investment company has spent £3.95m buying a prime location in Sutton town centre.

Palace Capital announced the completion of its acquisition of 46-55 High Street, Sutton from Dering Properties,earlier this week.

The 1980s property, located about 200m away from the train station, currently lets out to businesses, Foxtons, Sharps Bedrooms and Nirvana Beauty and has about 25,564sq ft of office space.

At present the office space is let to the Sutton Housing Partnership until June 2022 with Sutton Council guaranteeing the lease.

Rent is currently £42,906 per year and produces a gross income of £356,000 annually.

In turn this provide a net income of £313,093 each year and a yield just under 8 per cent.

Neil Sinclair, chief executive of Palace Capital, said: "We are delighted to have made this addition to our portfolio of a fully let property with strong tenants and an attractive yield.

"Sutton benefits from excellent links into Central London and is, in our view, a growth location.

"The property has excellent potential, and we will be exploring various opportunities in the medium term to create further value for our shareholders through active management."

Sutton centre is the subject of a number of developments with work taking palce at Times Square, South Point, at the former gas works, and on Brighton Road at the former multi-storey car park.