Orchard Street Investment Management has completed the acquisition of 141 Wardour Street, a prime mixed-use asset in Soho, London for €61.8m (£55m). The purchase price reflects a net initial yield of 4.31% and the acquisition was made on behalf of St James’s Place UK Plc. The prominent freehold property dates back to 1931 and was redeveloped behind a retained façade in 2001, providing approximately 34,000ft² of office and retail accommodation across six floors. The building is fully-let to two tenants and provides a total rent of €2.8m (£2,5m) per annum, reflecting a low €82.10 (£73) per ft² on the offices and €90.8 (£80.74) per ft² on the retail unit overall. The property provides a WAULT of 10.6 years with Moving Picture Company, the film production studio, occupying the entirety of the offices and Princi, a popular Italian restaurant and bakery part-owned by Starbucks, operating across the ground and basement floors.
Located in the heart of the West End’s Soho district and prominently situated on the corner of Wardour Street and Broadwick Street, the property benefits from excellent transport links with the opening of Crossrail at nearby Tottenham Court Road in 2019 and a vibrant mix of creative office occupiers and restaurants adding to the area’s long-term appeal. The property was previously managed by Roebuck Asset Management, who had advised on its acquisition in 2011 and acted for the vendor in the sale.
Harry Buxton, Acquisitions Manager at Orchard Street, commented: “The purchase of 141 Wardour Street makes a great addition to the portfolio on account of its prime Soho location, proximity to Crossrail and underlying reversionary profile. We believe Soho’s diverse occupier mix and vibrancy will continue to flourish and reinforces our investment strategy of acquiring well-located assets with strong long-term characteristics."
Nick Rhodes, Director at Roebuck Asset Management, said: “The asset has performed very well over the past seven years, providing a stable and improving income return. Its location continues to be of key importance for both occupiers, who have specifically chosen this asset for long-term occupation.”
