Investment/finance | Costar
Hong Kong investor CC Land Holdings is to buy One Kingdom Street, the Paddington headquarters of Vodafone, for £292m.
CC Land is due to exchange contracts later today on the acquisition of the building from a joint venture between TIAA and Swedish pension funds AP1 and AP2 for a net initial yield of around 5% on the SPV purchase.
Comprising 264,898 sq ft of grade A office space over 12 floors, the building has 27,300 sq ft office floor plates.The building is fully let to occupiers including Vodafone, Statoil, Shire Pharmaceuticals, Misys and MWB with a weighted unexpired term certain of 6.8 years.
It produces a total passing rent of £14.4m pa reflecting a low average rent of £54.60 per sq ft overall.There is also the ability to significantly increase rental levels with 89% of the space subject to rent reviews in 2018.
JLL and Michael Elliott were appointed towards the end of last year to quietly market the building for £300 million, reflecting a yield of 4.73%, assuming purchaser’s costs of 1.8% and a capital value of £1,132 per sq ft.
Kieran D Cotter & Co. acted for CC Land.
