In line with the strategy of broadening its London interests, Quintain has acquired all of the units in the Aldermary House Unit Trust, which owns the leasehold interest in Aldermary House, 10-15 Queen Street EC4, for £40.0 million (approx. €48.7 million) in cash (before rental top-up adjustments).
The ten storey building is centrally located in the City of London opposite Bloomberg Place, the construction site of Bloomberg’s new London headquarters, which is scheduled to open in September 2016 and will contain a new entrance to Bank Underground Station.
The rental income at Aldermary House, including top-ups, is approximately £2.5 million, representing a yield of 6.1%. The asset contains 61,990 ft² (approx. 5,759 m² ) of commercial space, of which 50,129 ft² (approx. 4,657 m² )is office and 11,861 ft² retail. 45,339 ft² of the office space is let to 13 occupiers with a further 4,790 ft² of recently refurbished space available to lease. The 11,861 ft² of retail space is let to five tenants. The average rent, including the available space, is circa £42.00/ft².
The building has been partially refurbished in the last two years and the asset offers further opportunity for active management. The weighted average unexpired lease term across the building is 8 years.
The units in the Aldermary House Unit Trust are being acquired from AFH Investment LP, which is jointly owned by Columbus UK Real Estate Fund L.P. and the British Airways Pension Fund and managed by Columbus Capital Management LLP.
Maxwell James, Chief Executive of Quintain, said: “We are delighted to have made our second acquisition for Quintain’s London Portfolio in this excellent City location.
“Our ability to actively manage the property, combined with the strength of the existing location and improvements that are underway, will deliver a strong and growing income stream, whilst providing the potential for additional value creation to the Group.” Quintain was advised by Michael Elliott. Columbus Capital was advised by Savills and Capital Real Estate Partners.