Sold

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
Tenure:
Freehold
Net Initial Yield:
4.93%
Site Area:
24,056 sq.ft [2,235 sq.m]

Tenancy

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.

Income

Total rent of £1,199,000 per annum (£49.84 per sq ft overall).

Description

  • 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.