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31 January 2022

Development overlooking the Tower of London could pave the way for a 220,000 sq ft scheme

What Hobart is buying the Mark Lane Estate

Why Potential to deliver a 220,000 sq ft mixed-useredevelopment

What next Hobart can gain vacant possession of the properties in late 2023/early 2024

A pair of office blocks overlooking the Tower of London are close to being sold in a move that could pave the way for a 220,000 sq ft redevelopment, React News can reveal.

Hobart Partners is in advanced negotiations to buy the Mark Lane Estate from DTZ Investors for nearly £90m.

Terms have been agreed on the deal with exchange of contracts expected to be imminent.

The 130,000 sq ft of office and retail space that is currently on the 0.8-acre freehold City site at 47 and 50 Mark Lane is multilet to 25 tenants with a vacant possession block date in late 2023 or early 2024.

At which point Hobart, co-founded by Sas Bhadra and Jeff Harris, will have the option of repositioning the asset for alternative uses, redevelop it, or carry out a lighter-touch refurbishment and extension of c.140,000 sq ft.

A feasibility study has been carried out for a 220,000 sq ft redevelopment scheme (pictured), subject to securing planning consent.

The assets, close to the upmarket Four Seasons hotel at Ten Trinity Square and the proposed Chinese Embassy, currently produce a reversionary rent of just under £40/sq ft.

In 2020, DTZ Investors instructed BNP Paribas Real Estate and Cushman & Wakefield to sell the Mark Lane Estate for a 4.8% yield and a capital value of £775/sq ft.