Helical has sold a central London office building for £48.5m and a net initial yield of 3.92%.
The sale of 90 Bartholomew Close, Barts Square, EC1, which was made by Helical and its joint venture partner The Baupost Group, is a fillip for the property market during a period of few investment transactions due to the covid-19 pandemic.
Additionally, the price achieved is well ahead of the £44m that Helical had hoped to achieve when it put the building on the market in January 2020.
The price achieved and sub-4% yield will be a welcomed boost to the market. The sales price reflects a capital value of £1,594 per sq ft.
The joint venture sold the 24,013 sq ft office to La Francaise Real Estate Partners International, also showing that international investors appetite remains strong for opportunities in London.
Helical’s share price in early morning trading was up 4% on the news.
The recently completed six-storey building is multi-let to five office tenants from a range of industries including law, software design and business consultancy. it produces a total headline rent roll of £2m a year, reflecting an average of £76.26 per sq ft on the office accommodation.
HLCL : Helical sells central London office at sub-4% yield