Affiliates of Helical Bar plc and Crosstree Real Estate Partners have sold Empire House, part of The Bower at Old Street, to the Standard Life Investments Long Lease Fund for £20.65m (€29.18m). The sale price represents a net initial yield below 4%. Empire House is fully let to Z Hotels and restaurant, Ceviche.
Elsewhere at The Bower, Phase One, which represents approximately 150,000 ft² (13,935 m²) of space, is now almost fully let with the practical completion of Phase One imminent.
Helical Bar and Crosstree originally acquired the property as part of a 3.12 acre site situated directly adjacent to Old Street Roundabout, London, for a total cash consideration of £60.75m (approximately €85m).
Gerald Kaye, Helical Bar’s Development Director, commented: “The sale of Empire House was a logical move as it is a self-contained asset within The Bower development and is now fully let and performing well. Progress continues elsewhere at The Bower and Phase One of the development is on the cusp of completion. Located in the heart of vibrant Old Street, we continue to see considerable demand for space at The Bower, with strong covenants achieved to date and tenants particularly attracted by the blend of well-styled office, retail, leisure and public space.”
Richard Marshall, Fund Manager of the Standard Life Investments Long Lease Fund, commented: “We are delighted to have acquired Empire House. The purchase reflects the Fund’s ambition to secure long-term RPI linked income streams, which help our investors match their pension fund liabilities. Empire House provides the Fund with exposure to a vibrant area of London with particularly strong growth prospects, and is ultimately underpinned by an attractive vacant possession value”.
JLL acted for Crosstree/Helical Bar on the sale of Empire House. Allsop acted for Standard Life Investments.
