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Asset Management

2 Devonshire Square, London EC2A


Client

Private Pension Fund

Property

Stylish Character Offices

Project Summary

Strettons’ Asset Management Department was instructed to advise a private pension fund in the summer of 2014 following the purchase of a multi let office building located close to London Liverpool Street Station.

The building is an attractive period office building built in 1912 in the City of London. The total rent at the time of purchase was £116,408 pa and our client paid £3,575,000. The building was previously occupied by the Bank of Nigeria until the early 1980’s. Strettons were instructed to manage the building for our clients immediately after the purchase.

The property was generally in a poor state of repair with little investment made by its previous owners. It was clear that the external and internal decorations and mechanical and electrical services would all need to undergo substantial work.

Strettons worked with Chartered Building Surveyors and over a two year period project managed a capital programme of over circa £200,000 of expenditure. 

During this period we advised our client that the building was significantly under rented and within 2 years all of the leases on the 5 upper floors had all been brought to an end and either re-geared or re-let on substantially improved terms through our City agency team, who were able to reassure our client with the demand for circa 1000 sq. ft. floor plates in the locality.

The rent roll has been doubled since our client’s purchase and we estimate that the full open market rental value is triple the original rent roll and currently 50% higher than that passing.

In addition, we identified that the basement, which was only producing a rent of £24 per sq. ft., would lend itself to an alternative use and we introduced our client to a firm of architects and have worked up a planning application for

A3/A4 consent, with the intention of putting a restaurant or bar into the unit. The space is currently being marketed by Strettons at a rent of £120,000 per annum – double the original rent roll for this floor alone. We believe that the building is now valued at over £6,000,000. 

Simon Tilsiter

020 8509 4430
simon.tilsiter@strettons.co.uk