Prime Midtown Freehold Mixed Use Refurbishment Opportunity, EC4
1 Fetter Lane, London EC4
Sold for £22,800,000
- Property Types:
- Commercial, Development Opportunity
- Sub Types:
- Office, Retail
- Net Initial Yield:
- Site Area:
- 24,056 sq.ft [2,235 sq.m]
Multi-let to one office tenant and four retail tenants producing a total rent of £1,199,000 per annum (£49.84 per sq ft overall).
Weighted Average Unexpired Lease Term to earliest determination of approximately 0.5 years on the office space and 9.35 years on the retail accommodation.
Total rent of £1,199,000 per annum (£49.84 per sq ft overall).
- Prominent corner building in a prime Midtown location on the junction of Fetter Lane and Fleet Street, within close proximity of City Thameslink, Farringdon and Chancery Lane stations.
- 24,056 sq ft (2,234.9 sq m) of office, retail and ancillary accommodation arranged over lower ground, ground and six upper floors.
- Low passing rent of only £46.98 per sq ft compared to prime Midtown rents in excess of £75.00 per sq ft.
- Highly reversionary retail income accounting for c.23% of the overall income, with average rents of £152 Zone A, with rents on Fleet Street in excess of £200 Zone A.
- Opportunity to increase the net lettable area of the building by 3,306 sq ft (307.1 sq m) subject to obtaining the necessary consents.
- Offers are sought in excess of £21,000,000 for the freehold interest, subject to contract and exclusive of VAT. This reflects a net initial yield of 5.35% and a capital value £873 per sq ft on the existing area and £767 per sq ft on the proposed area, assuming 6.75% purchaser’s costs.
- Applying a yield of 4.50% to the existing retail income this pricing equates to £776 per sq ft on the existing office area and £664 per sq ft on the proposed office area.