Quintain Estates & Development PLC announces that it has exchanged contracts to acquire a 21 year leasehold interest in Kingsbourne House at 229-232 High Holborn and part of the adjacent 226 High Holborn for £13.7 million in cash.
Kingsbourne House is a recently refurbished office building situated in a prominent location with excellent transport links. Completion is subject to the landlord’s consent, not to be unreasonably withheld, and is targeted to occur within three weeks.
The acquired property, which is above and adjacent to Holborn Underground station, is substantially let to nine tenants with a contracted rental income of £1.2 million, rising to £1.4 million on completion of an agreed letting, representing an initial yield of 10%. The property is being acquired from Dorrington Properties Plc.
Maxwell James, Chief Executive, said: “This area of Midtown is transforming rapidly, supported by significant infrastructure spend. The acquisition of this key site in Holborn delivers a strong income stream to the Group in the medium term, whilst offering exciting future asset management and development opportunities.”
Quintain was advised by Michael Elliott LLP.