Prime South Bank Long Let Freehold Investment Opportunity
Palace House, 3 Cathedral Street, London SE1
Sold for £48,800,000
- Property Type:
- Sub Types:
- Office, Retail
- Net Initial Yield:
- Site Area:
- 45,012 sq.ft [4,182 sq.m]
The office space is single let to Kaplan Estates Limited guaranteed by Kaplan UK Limited, a 5A1 rated company, for a term of 15 years expiring 31st August 2032, with a tenant option to determine on 31st August 2027. The overall passing rent of the office accommodation is £2,453,165.50 per annum (£57.76 per sq ft).
The retail unit is let to Nero Holdings Limited t/a Caffé Nero for a term of 15 years from 11th June 2007 expiring 10 June 2022. The rent payable is subject to a minimum base rent of £150,000 per annum and an additional turnover rent.
£2,603,165.50 per annum (£58.63 per sq ft overall)
- Located in the thriving South Bank district adjacent to Borough Market. London Bridge station is within a five minute walk from the property.
- Currently under refurbishment by Kaplan, the property comprises 45,012 sq ft (4,182 sq m) of accommodation arranged over ground and five upper floors. The accommodation includes 43,083 sq ft (4,002 sq m) of office and ancillary accommodation and a retail unit at part-ground and part-first floor extending to 1,929 sq ft (179 sq m).
- The weighted average unexpired lease term is 14.07 years to lease expiry and 9.36 years to earliest break.
- Headline rents on the South Bank in excess of £70.00 per sq ft with very limited supply of stock coming forward.
- Asset management opportunities to better utilise the undercroft parking as retail or leisure use, taking advantage of the heavy footfall from nearby Borough Market and longer term redevelopment potential.