Helical plc has acquired Power Road Studios, West London, for £34m (€47.4m) from Sapcote Developments, represented by JLL. With a net yield of 4.4%, the office is being acquired with existing cash resources and will offer immediate income as well as scope for extension and development.
The building is currently fully let by a range of tenants, from small entrepreneurial businesses and retail companies to larger media firms. The two-acre site houses five stand alone buildings; totalling 62,000ft² (5,759m²) where the average rent is £25 per square foot.
The building is a former warehouse used by Singer Sewing Machine Company - built in the 1930s - it retains several of its original features, including exposed metal columns and high ceilings. It also includes an imposing reception and communal café space for its tenants. Power Road Sudios is located on the popular West London corridor, with 140 parking spaces on site and Gunnersbury mainline and underground station approximately five minutes’ walk away.
Duncan Walker, Helical’s investment director, said: “This acquisition underpins our continued belief in the London market and complements our existing West London portfolio. It offers immediate income, the potential for the creation of additional space and the luxury of choice as to when to implement any construction activity. It is located in a market which we know extremely well and where we are confident that we can capture the reversionary potential of the asset.”
Helical’s portfolio is primarily targeted towards London for capital growth and development. In November, Helical acquired The Bower development (207 Old Street Unit Trust and 211 Old Street Unit Trust) and disposed of its interest in the Old Street Unit Trust, the asset owning entities, for a combined net £76m (€109m) payment to Crosstree, plus refinancing the existing external debt of £88m (€126m).
