On behalf of a private UK vendor international real estate advisor Savills has been appointed to sell a rare freehold island site in the heart of Soho, London W1. Offers are invited in excess of £27 million, reflecting a net initial yield of 3.03%.
On behalf of a private UK vendor international real estate advisor Savills has been appointed to sell a rare freehold island site in the heart of Soho, London W1. Offers are invited in excess of £27 million, reflecting a net initial yield of 3.03%.
Spanning 116 –126 Wardour Street, 13 – 14 St Anne’s Court and 1 Flaxman Court, the mixed use estate totals 17,549 sq ft across six buildings. The property is multi-let to a diverse occupier base including leisure operators Cote Brasserie and Fuller’s on the ground floor and a mix of creative and media occupiers such as Aquarium Studios Ltd, Eclectic Sounds, People Live Ltd and Tilling Productions Ltd. In total the site produces a gross rental income of £892,673.24 per annum.
Paul Cockburn, head of the West End investment team at Savills, comments: “Leased off a low average rent of £36.40 per sq ft on the offices, £114.47 per sq ft on the restaurant, and £116.80 per sq ft Zone A on the retail, the investment provides a high reversionary income with multiple asset management opportunities. As we see a dearth of new investment sales coming to market in London in 2018, against a backdrop of continued strong buyer demand, this is an opportunity to acquire a sensibly priced, sizeable Soho block with great potential to add value through asset management.”
According to the latest research from Savills, a shortage of openly marketed investment opportunities saw subdued transaction volumes in London’s West End market Q1 2018, with turnover for the first three months of the year totalling £1.07 billion over a total of 24 transactions, 17% below the 10-year Q1 average. The firm says the lack of product, combined with continued appetite for Central London property, has led to strong prices being maintained for all commercial asset classes within the West End, with the current supply demand imbalance showing no sign of abating.