Hermes Real Estate Investment Management Limited (HREIML) announced the completion of the acquisition of Cityside House and Challenger House in Whitechapel.
Cityside House is a 54,000 ft² (approx. 5,016 m²), fully let office building at the western end of Whitechapel Road near Aldgate. Adjoining Cityside House, Challenger House is a hotel comprising almost 56,000 ft² (approx. 5,202 m²) which has recently been let to a new hotel operator on a 25 year lease.
Chris Taylor, Chief Executive Officer of Hermes Real Estate Investment Management Limited said:
“Both buildings occupy a site of approximately 1.1 acres just moments from the eastern City fringe and in an area which is undergoing significant improvement with the transformational impact which the development of Crossrail will bring to this part of Central London; surrounded by recently developed private dwellings, including student accommodation, this off-market acquisition plays well to HREIML’s strengths in securing attractive asset management opportunities. Our in-depth understanding of the market and occupier demand and requirements continually provides us with a competitive edge.”
Robin Pearce, Director of Columbus Capital Management said:
“This has been a great investment for us having been an early investor in this improving area and we were delighted to complete the sale of both buildings within three months of letting the whole of Challenger House to Qbic for its first hotel in the UK.”
The initial yield will increase from 2.8% to 6.6% once the hotel becomes income producing in August 2014.
HREIML was represented by Nabarro. The seller, Gresham Real Estate Fund II LP, a fund managed by Columbus Capital Management LLP in a venture with Appley Properties was advised by Appley Properties and Savills.
Source: Hermes Real Estate