London, February 25 – Following the recent successful letting of the 25,200 sq ft building to Diabetes UK for 10 years, Boultbee Brooks Real Estate (BBRE) has sold the freehold interest in the prominent Aldgate property to the Charities Property Fund c/o Savills Investment Management, achieving a yield of circa 4.75%.
Commenting on the disposal, Robert Cannock of Aurum Real Estate who advises BBRE said “After deciding to accept a letting of the whole building to Diabetes UK as opposed to progressing our originally intended multi-let strategy, we received a number of strong approaches from investors keen to acquire the property development. This allowed us to consider an early disposal of the asset which we were happy to do.”
James Whitcher, Asset Manager, at BBRE, said; “While we continue to be very interested in adding to our portfolio in the City Fringe markets, we are prepared to recycle equity opportunistically through sales of assets, once we have executed our business plan. We are very happy to hold multi-let investments that offer future active asset management opportunities in the short to medium term, but once Back Church Lane was fully let to a single occupier, it made sense for us to sell. We will look to re-invest the proceeds of the sale into new opportunities.”
Angy Benitz, Portfolio Manager of the Charities Property Fund commented: “The migration of tenants within Central London to more affordable and growth locations is a theme that has informed our buying strategy – this fund now owns seven London office buildings in locations such as Shoreditch, Farringdon, Camden and now Aldgate let at an average rent of less than £40 per sq ft in fully refurbished or newly developed buildings. Aldgate has attracted significant investment in recent years and Crossrail’s arrival at Whitechapel will further add to its attraction for occupiers and investors. Boultbee Brookes Real Estate has delivered an excellent building and it’s no surprise that a high profile tenant such as Diabetes UK has chosen this location for their new headquarters.”
For more information contact:
Kim Taylor/Lisa Northcott
M: 07718 158 800/07885 980 154