The summary details of the opportunity are as follows:
Core City of London location within a
150m of the Bank of England.
A vibrant City position surrounded by a wide variety of
retail, bars, cafés, restaurants and amenities.
The property comprises 22,336 sq ft (2,075.1 sq m) of
offices, ancillary and public house/restaurant accommodation over lower ground,
ground and five upper floors.
The building was reconstructed behind the Grade II listed
façade in 2000 to provide highly specified offices including four pipe fan
coil air-conditioning, raised floors and metal tiled suspended ceilings.
An effective 150 year-long leasehold interest from November 1998
i.e. over 133 years unexpired at a ground rent based on 5% of net rents
Multi-let to 6 office tenants with the
office lease expiries and break options between June 2015 and March 2021 at a low
average rent of approximately £40 per sq ft (including 12 months rental top
up on the 2nd and 5th mezzanine floors at £52.50 per sq ft).
Approximately 19% of the income is secured to Greene King for
over 9 years at just over £25 per sq overall.
Approximately 41% of the office income is secured until at least
March 2020, with an average weighted unexpired term for the building of 4.6
years to expiries and 3.8 years until earliest determination (including the
rental top ups).
The net rent is £753,392 per annum (assuming an estimated
current ground rent of £36,506 per annum).
Offers in excess of £16m, subject to contract, reflecting a
net initial yield of 4.46% (after deducting purchaser’s costs of 5.8%)
and a capital value of £716 per sq ft.
The property provides an excellent opportunity to drive rents
forward in the short to medium term by actively managing the property to take
advantage of the improving City of London rental market.
Should you require any further information or wish to
arrange an inspection, please do not hesitate to contact either: