The property is multi-let on 28 tenancies with a variety of lease expiries over the next few years.
The property is located just 400 meters to the north of Farringdon Station, a flagship station for Crossrail, and comprises an entire island site of four self-contained Victorian buildings totaling 61,918 ft². It is multi-let on 28 tenancies with a variety of lease expiries over the next few years. The current passing rent is £1.7 million pa reflecting a low average rent of £27.28 per ft² with the opportunity to increase the rents as the building is modernized over time.
Jane Gravestock, Head of Specialist Property Funds, UK, at Schroders, said: “The transaction is in line with WELPUT’s strategy to recycle capital into the market following the sale of Stratton House in Mayfair in April for £166 million, having concluded its successful redevelopment.
“This acquisition provides WELPUT with a strong income yield and compliments its purchase of the core Mayfair St James asset completed earlier this month at Buchanan House in St James’s Square, which was acquired for £66.375 million at a 4.5% initial yield or £1,228 per ft².”
Nigel Kempner, Head of Grafton Advisors, part of Quintain Estates and Development PLC, said: “WELPUT has chosen to invest in the Clerkenwell area because it is a location that has been increasingly favored by technology, media and telecommunications-related occupiers who have moved from the core West End.
“It is also a location which we believe will benefit significantly from the new Crossrail station at Farringdon and other development which is coming on stream around it. The buildings themselves offer great opportunity for a rolling refurbishment program around existing and new occupiers.
“This purchase is in line with our strategy of crystallizing profits, in this case through the sale of Stratton House and recycling the capital into assets where we can add value through our expertise.”
Colliers International represented WELPUT, while EA Shaw and Hatton Real Estate advised the vendor.
Source: FTI Consulting