Helical Bar plc today announced that it has sold Battersea Studios, Silverthorne Road, London SW8 for £35 million (approx. €42.6 million) to the Schroder UK Property Fund.
Originally built in the 1970’s as a warehouse for BT and subsequently turned into a broadcasting center by a Middle Eastern broadcaster, Helical Bar acquired vacant possession of the site in 2005 for £8 million (approx. €9.74 million). The Company comprehensively refurbished the property into 56,848 ft² (approx. 5,281m²) of studio offices, a café and a number of TV studios. Once the main building was fully let, Helical Bar built a new 51,194 ft² (approx. 4,756 m²) office building in the car park of the site in 2008.
The property, which now totals 108,042 ft² (approx. 10,037 m²), currently produces a passing rent of £1.47 million (approx. €1.79 million) per annum equating to £21.50 per ft².
Jack Pitman, Director at Helical Bar, commented:
“Following our acquisition of Battersea Studios as an empty property nine years ago, we successfully repositioned it into multi let offices and TV studios aimed at tenants in the media and creative industries.
“Having completed our remodeling of the property, we are happy to take advantage of the current strong investment market in London to sell this asset. In line with our strategy, we will reinvest the proceeds in new acquisitions with the potential to add value through active asset management, both in London and outside.”
James Lass, SPF, Fund Manager commented:
“We are delighted to have completed this off-market transaction in Battersea. SPF has had considerable success over the years investing in fringe London office markets such as Southwark and Old Street ahead of the curve and capturing above market rental growth and returns.
“As these locations have matured and rents have grown considerably our strategy has shifted to focus on the areas of London we believe will witness the next wave of growth. With the infrastructure improvements underway in Battersea, along with low base rents the asset is very well placed to capture the growing occupier demand we are seeing.”
Source: FTI Consulting