Orchard Street, the specialist commercial property investment manager, announces that it has completed the acquisition of Dunn’s Hat Factory, a prime office asset in Camden, North London, for c. €28.5m (£25.3m) in an off-market transaction. The property was acquired from Threadneedle on behalf of St James’s Place Property Unit Trust, and the purchase price represents a net initial yield of 4.3%.
The warehouse-style asset was transformed in 2004 from a former hat factory, dating back to the 1920’s, into contemporary office accommodation, retaining many of its original art-deco features. The 35,352 ft² of bright and modern office space is spread across six floors with two further storeys of residential on the seventh and eighth levels which have independent access and were sold off on a long lease. The asset includes a 1,604 ft² ground floor suite which benefits from both office and retail consent, while there is also a generous provision of newly installed shower and cycle storage facilities. The multi-let property has been acquired with 13% vacancy, presenting an attractive asset management opportunity for its new owner.
Located in a vibrant pocket of North London straddling Camden and Kentish Town, Dunn’s Hat Factory sits less than a mile from King’s Cross St. Pancras, while five tube and overground stations are within a 10 minutes’ walk. Famed for its iconic market, Camden is one the UK’s top five tourist destinations, attracting 40 million visitors per year. On the commercial side, the area has also gained popularity with a diverse occupier base, mainly from the creative sector. The London submarket already boasts an impressive retail and leisure offering, which is set to further improve as the approved multi-billion pound regeneration of the area gets underway, enhancing its world-class local amenities.
Barney Rowe, Partner at Orchard Street, commented: “Dunn’s Hat Factory is a distinctive addition to our portfolio, offering prime warehouse style office space which appeals to the creative industries that are drawn to the area and who we will be targeting. It is well positioned for further growth thanks to the gentrification underway locally, while rental levels remain highly competitive in comparison to similarly well connected London alternatives.”
