Picton Capital has instructed Gryphon Property Partners to sell Boundary House in the City of London for over £30m, paving the way for a potential 75,500 sq ft redevelopment of the building.
The property, at 7-17 Jewry Street, EC3, has been put on the block for £30.85m, reflecting a net initial yield of 4% and a net capital value of £685 per sq ft.
The freehold asset is multi-let to 12 office tenants, producing a passing rent of £1.319m per annum, equating to an average rent of £28.24 per sq ft for the ground and upper floor office space. This compares to the ground floor west unit which is now under offer at £50 per sq ft.
Located at the crossover between the Aldgate district, popular with TMT occupiers and the established City of London financial and insurance heartland, Boundary House comprises 45,062 sq ft of offices over ground and seven upper floors.
The assumed estimated rental value of the property is £2.23m per annum which, based on £50 per sq ft on the best space, is 69% higher than the total current rent passing. Assuming rents of £50 per sq ft are achieved on the best space, the reversionary yield would be in excess of 6.75%.
All occupational leases are outside of the Act and the building offers well timed lease events to enable rents to be driven forward in the short to medium term with weighted average terms of just over 3.1 years to the lease breaks.
The sale presents active management and repositioning opportunities in the short to medium term, with the possibility for a medium to longer term redevelopment of c.75,500 sq ft, subject to planning.
If you are interested in viewing Boundary House please call Gryphon Property Partners on 0203 440 9800 or click on the following link - Boundary House