Union Investment to sell City of London landmark (UK)


The 10 Gresham Street building in London.

Savills has brought 10 Gresham Street, London EC2 to the market on behalf of Union Investment Real Estate GmbH for a price in the region of £180 million, (€209 million) reflecting a net initial yield of 5.65%.

The landmark office headquarters was designed by Foster and Partners and completed in 2003. It comprises 25,125 sq m (259,685 sq ft) office, retail and ancillary accommodation over seven floors with 30 car parking spaces.

It is let to eight tenants with Lloyds TSB accounting for 55% of the rent until August 2022 at a passing rent of £42.40 per sq ft overall. Other tenants include Jones Lang LaSalle, Alcentra, Milbank Tweed Hadley & McCloy, Mondrian Investment Partners, Principal Global Investors and JC Flowers. The restaurant is let to Malfatti City Limited. The total annual passing rent is £11,312,928 per annum.

James Goldsmith, director of Savills Central London International team says: "High quality, trophy assets in such a core City of London location rarely come available. This building is finished to the highest standard with excellent tenants on very modest rents and with rental growth forecast at 34% over the next four years, the property has excellent prospects for investment performance. There are also significant capital allowances available".

Source: Savills

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