Europa/Hobart JV swoops for Marriott’s City HQ
Thursday, October 06, 2016, CoStar.
A joint venture between Europa Capital and Hobart Partners has agreed a deal to buy Marriott Hotels International’s City of London headquarters on Fetter Lane from TH Real Estate, CoStar News can reveal.
The JV yesterday exchanged contracts to buy the building – Barnard’s Inn at 86 Fetter Lane, EC4 – for around £60m.
Hobart, co-founded by Sas Bhadra and Jeff Harris, together with Europa have been actively seeking investment opportunities in London this year.
Farebrother was instructed to sell the 100,579 sq ft office development, which produces an annual income of £3.41m per annum, reflecting an average rent of £33.93 per sq ft, towards the end of last year.
TH Real Estate has held the asset since 2004 when Great Portland Estates agreed to sell two central London office buildings to, and acquire one office building from, the Henderson Central London Office Fund.
The two office buildings sold at the time were Barnard’s Inn, at 86 Fetter Lane, EC4, and 38 Finsbury Square, EC2.
Marriott Hotels International is the main tenant in the building, occupying around 40,000 sq ft on a lease which expires on 17 December 2018, and at a rent of £1.144m per annum, or £36.70 per sq ft overall.
In 2014, TH Real Estate let the part ground and lower ground floor at Barnard’s Inn to Encore Tickets for a term until December 2018. Encore pays a rent of £372,000 per annum on the 15,571 sq ft, equating to £35.50 per sq ft on the ground and £20.50 per sq ft on the lower ground floor
The top floor of the building is let to Nikkei Eurioe at £39.99 per sq ft, with Veale Wasbrough Vizards, Capita Business Services, Copyright Licensing Agency, and KFG Quickserve Limited t/a Nuts & Confectionary on the lower floors.