Derwent London has exchanged contracts to acquire the freehold of Aldgate Union, Whitechapel High Street E1 from the Royal Bank of Scotland for £132 mln (approx. €185.6 mln) before costs. The building will be acquired with vacant possession in December 2015, and at a price that reflects a capital value of £518 per ft². This Whitechapel acquisition demonstrates the Group’s commitment to London’s rapidly improving Tech Belt, and its confidence in the strong levels of occupier demand.
The property sits on a one acre site and comprises a substantial eight-storey office building totalling 255,000 ft² (approx. 23,690 m²) over ground, seven upper floors and two lower ground floors. The property has typical Derwent London characteristics of generous floor to ceiling heights, good natural light and excellent transport connections as well as column free floor plates of c.26,500 ft² (approx. 2,461 m²) around a central atrium. It is located directly opposite Aldgate East underground station and close to Liverpool Street and Whitechapel Crossrail stations. The property is currently occupied by RBS and was comprehensively refurbished in 2008.
John Burns, Chief Executive Officer, commented: “We are delighted to have acquired a prominent property in this fast improving Whitechapel location which increases our Tech Belt holdings to 2.4 million ft² (approx. 222,967 m²) Although soon to be vacant the building is in good condition and we expect to quickly re-let it on a multi-occupier basis after modest refurbishment. As with most of our recent purchases this property offers significant longer term regeneration opportunities and adds to our future development pipeline.”
Source: Derwent London