Allsop on behalf of Melburg Capital, has been instructed to sell Warehouse K, a Grade II-listed former tobacco warehouse in London’s Docklands. The building provides office, leisure and industrial space on a 1.84-acre site and was redeveloped in 2002, with further modernisations in 2016.
The 108,479 sq ft office-led development near Silvertown Quays and Royal Albert Docks, is being sold for £48.5m, reflecting a yield of 4.88% and a capital value of £447 per sq ft.
51% of Warehouse K is let to the UK Government for the Home Office for a further 14.5 years. The remaining space is multi-let, providing an overall WAULT of over 12 years.
Warehouse K produces a total passing rent of £2.528m per annum, reflecting £23.31 per sq ft overall.
Other major occupiers include the London International Exhibition Centre and Docklands Restaurants and Bars, which together account for c.10% of the total income.
Further information and coverage of this investment can be found on React news (pay walled) https://reactnews.com/article/melburg-to-offload-government-let-former-docklands-tobacco-warehouse/