Stenprop is bringing its London property asset, Euston House, to the market with the guiding price of c. €101m (£90m), reflecting an attractive initial yield of 4.9%. The 113,000ft² office building is fully let at an average rent of just €44.8 (£40) psf to the likes of Siemens PLC, Learning Tree International and i2 Offices. Investors will be able to action significant asset management initiatives, either with the existing tenants in place or utilising a potential ‘block’ lease expiry date in 2022.
The current building could at that point be significantly upgraded and extended to take advantage of the improving Euston market. Nearby King’s Cross has already been transformed, with office developments there attracting tenants of the calibre of Google and Facebook at record rents.
Gerald Eve is acting as an agent for the property. Lloyd Davies, partner at Gerald Eve who is leading the sale process, suggests that this is “one of the most attractive value-add opportunities to come to the market in recent years offering short, medium and longer-term reversionary possibilities in an exciting area of significant regeneration”.
