JV buys Shoreditch blocks for 135,000 sq ft conversion
Monday, October 23, 2017 CoStar
A joint venture between Hobart Partners and Bridges Fund Management has bought Quick & Tower House in Shoreditch for just over £35m with plans to redevelop the building into a scheme of around 135,000 sq ft, CoStar News can reveal.
The JV completed the deal last Friday with vendor Aberdeen Standard Investments, paying between £35m and £36m for the two office buildings, reflecting a yield of just north of 4%.
The two office buildings, which comprise 53,745 sq ft are let to four tenants until December 2020 and generate an annual rental income of £1.47m, equating to an overall rent of £27.40 per sq ft. The short income will allow the JV to work up plans for the building, which could see a conversion to more than twice the commercial space currently on the site.
Quick & Tower House came close to being sold six months ago for around £38m but a deal was never agreed. Hobart was one of the underbidders last time round. Both Hong Kong’s Peterson Group and Tellon Capital are understood to have looked at the investment but neither agreed terms.
Aberdeen Asset Management bought the freehold interests of Quick and Tower House in Shoreditch, EC2, from UBS Global Asset Management for £33.55m in July 2014. The purchase reflected a net initial yield of 4.15% and a capital value of £624 per sq ft.
Quick and Tower House is located in one of London’s fastest growing sub-markets, occupying a corner site fronting Clifton Street and Worship Street. The site extends to 0.5 acres, presenting a unique opportunity for redevelopment or refurbishment (subject to the necessary consents) following vacant possession. SWIP Property Trust had been working with development adviser Endurance Land.
Strutt & Parker was the selling agent; BNP Paribas Real Estate acted for the buyers.