Helical has sold its TikTok-let Farringdon office building to Chinachem Group for £158.5m.
The group has exchanged contracts on the sale of the single asset company, Farringdon East (Jersey) Limited, which owns the long leasehold interest in Kaleidoscope, Lindsey Street, EC1 at a capital value of £1,789 per sq ft and a marginal premium to book value.
The 150-year lease from Transport for London was granted in 2018 and has a head rent geared to 10% of contracted rents.
The six storey 88,580 sq ft office building sits above the Farringdon East Crossrail Station and is occupied in its entirety by TikTok, the popular short form video hosting service, which took a 15-year lease in March 2021 at £7,633,053 per annum (an average rent in excess of £86 psf). The PLP designed scheme is accredited BREEAM Excellent, WiredScore Platinum and provides a 5,000 sq ft roof terrace.
Matthew Bonning-Snook, property director at Helical, said: “Kaleidoscope was the first over station development to complete on the Elizabeth Line and we were able to attract one of the world’s fastest growing tech businesses due to its striking design, highly accessible location, excellent amenities and strong environmental credentials. We will now seek to recycle the proceeds from the sale into delivering new highly sustainable ‘best-in-class’ Central London office schemes, where occupier demand remains strong.”
HLCL : Helical sells TitTok office for £158.5m