Aberdeen Asset Management has acquired the freehold interests of Quick and Tower House in Shoreditch, EC2 from UBS Global Asset Management for GBP33.55m.
The purchase reflects a net initial yield of 4.15 per cent and a capital value of GBP624 per sq ft.
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 GBP1.47m, equating to a low overall rent of GBP27.40 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 has been working with development adviser Endurance Land.
James McLean, fund manager property at Aberdeen Asset Management, says: “The SWIP Property Trust is delighted to have acquired Quick & Tower House in this vibrant and fast emerging location on the southern boundary of Shoreditch in Central London. The area is being transformed with new infrastructure, namely Crossrail in 2018, and significant new mixed use developments surrounding Quick and Tower House. This purchase strengthens the SWIP Property Trust’s exposure into different Central London sub-markets and provides a potential significant development opportunity in 2020.”
Jonathan Fletcher, director of Endurance Land, says: ‘’We are positive about this improving location and the opportunity in the future to provide a first class development with the SWIP Property Trust, that will provide excellent work space for the vibrant and eclectic mix of occupiers in this up and coming hub.”
UBS Global Asset Management was represented by Knight Frank. Endurance Land and Strutt & Parker acted on behalf of Aberdeen Asset Management.