Canada Life Investments sells Farringdon office space for GBP29.6m
Canada Life Investments has sold the Superunion building in Farringdon for GBP29.6 million.
The sale of the virtual freehold took place on behalf of the LF Canlife UK Property ACS, and was sold to Hampshire County Council, acting as Trustees of the Hampshire Pension Fund. The 32,025 square foot grade A office space forms part of the Brewhouse Yard complex based in EC1 and is let to Superunion Ltd with a guarantee from WPP Group UK Ltd on a lease expiring Oct 2028.
The tenant is currently paying an annual rent of GBP994,691 per annum (GBP28.40 psf overall) which is subject to a five yearly rent review to RPI with a cap of 4 per cent and a collar of 1 per cent per annum. The next review coincides with a tenant break option in Oct 2023.
Michael White Head of UK Property at Canada Life Investmentsm says: “We have seen office rental values increase to upwards of GBP65 psf in Farringdon and Clerkenwell since we acquired this building in 2014. The asset has performed very well and above its benchmark, and we felt it was an appropriate time to sell the property as we direct the ACS more toward a value-add asset management strategy.”
Crossland Otter Hunt acted for Canada Life Investments and Michael Elliot on behalf of CBREGI acted for the purchasers.