RE Capital has sold a €45.2 million office property in London.
London, Thursday, 23 December 2021
1 Old Queen Street, St James's Park SW1, was sold to a private investor for €45.2 million (£38.4 million), reflecting a net initial yield of 3.83 percent. This deal comes after three early lettings at the 20,000ft2 office building opposite Westminster Abbey, including a new record for the Westminster submarket of €111 (£95) per ft2.
RE Capital bought the building for €28.2 million (£24 million) during the first lockdown, making it one of the few office investment deals in Q3 2020, and has subsequently committed €4.7 million (£4 million) in a large-scale rehabilitation and repositioning project. This includes obtaining approval for a community roof terrace with views of Westminster Abbey, a private courtyard, large end-of-journey facilities, high-quality materials throughout the building, and a plug-and-play standard on the top two floors.
RE Capital has acquired The Corner Building, 91-93 Farringdon Road, in a joint venture with SFO Capital Partners for €24.8 million (£21.12 million). The 18,859ft2 office building, which is adjacent to Farringdon Crossrail station, is 58 percent leased. RE Capital intends to reposition the building as a Grade A office asset through a planned capex program. The roof area will be converted into a communal patio, and vacant levels will be restored to CAT A+.
"To secure such a compelling exit of 1 Old Queen Street, having recently achieved practical completion, is a very strong endorsement of our original investment rationale, our asset management expertise, and the future of high-quality offices in strong locations," said Newman Leech, CEO of RE Capital. We are dedicated to both this area of London and the London office market in general, having recently begun building on our UK flagship, Greycoat Stores, a 78,000ft2 mixed-use destination development in Victoria."
(Researched, written and edited by: The Decision Maker)