WELPUT acquires 143-157 Farringdon Road, EC1
The West End of London Property Unit Trust (“WELPUT”), managed by Schroders and advised by Grafton Advisors, has completed on the purchase of the freehold interest in 143-157 Farringdon Road, EC1. The price of £25.85 million reflects a net initial yield of 6.20% and a capital value of £418 per sq ft.
The property is located just 400 meters to the north of Farringdon Station, a flagship station for Crossrail, and comprises an entire island site of four self-contained Victorian buildings totalling 61,918 sq ft. It is multi-let on 28 tenancies with a variety of lease expiries over the next few years. The current passing rent is £1.7 million pa reflecting a low average rent of £27.28 per sq ft with the opportunity to increase the rents as the building is modernised over time.
Jane Gravestock, Head of Specialist Property Funds, UK, at Schroders, said:
“The transaction is in line with WELPUT’s strategy to recycle capital into the market following the sale of Stratton House in Mayfair in April for £166 million, having concluded its successful redevelopment. This acquisition provides WELPUT with a strong income yield and compliments its purchase of the core Mayfair St James asset completed earlier this month at Buchanan House in St James’s Square, which was acquired for £66.375 million at a 4.5% initial yield or £1,228 per sq ft.”
Nigel Kempner, Head of Grafton Advisors, part of Quintain Estates and Development PLC, said:
“WELPUT has chosen to invest in the Clerkenwell area because it is a location that has been increasingly favoured by technology, media and telecommunications related occupiers who have moved from the core West End. It is also a location which we believe will benefit significantly from the new Crossrail station at Farringdon and other development which is coming on stream around it. The buildings themselves offer great opportunity for a rolling refurbishment programme around existing and new occupiers. “
This purchase is in line with our strategy of crystallising profits, in this case through the sale of Stratton House and recycling the capital into assets where we can add value through our expertise.”
Colliers International represented WELPUT, while EA Shaw and Hatton Real Estate advised the vendor.
For further information, please contact:
Estelle Bibby, Schroders +44 (0)20 7658 3431 firstname.lastname@example.org
Dido Laurimore/Olivia Goodall FTI Consulting +44 (0)20 7831 3113
Nigel Kempner, Grafton Advisors +44 (0)20 7518 8000
Notes to editors
For trade press only
West End of London Property Unit Trust (WELPUT) was established in 2001 as a closed ended property unit trust under the laws of Jersey. The aim of WELPUT is to provide investors with an exposure to the West End office market. The objective is to outperform the market as measured by Investment Property Databank (IPD).
The primary investment focus is office properties in the West End of London. Due to the nature of properties within the West End there will be elements of other uses such as retail and residential. The intention is to focus the portfolio on large multi-let buildings. WELPUT is reserved for experienced investors who must be aware of the risks attaching to the investment.
The manager of WELPUT is Schroder Property Managers (Jersey) Limited, one of the largest managers of Jersey Property Unit Trusts, covering various sectors of the UK market.
Grafton Advisors (2006) LLP is the property adviser to WELPUT and is a partnership formed by the former senior management of Benchmark Group PLC who founded WELPUT in 2001 and now a member of the Quintain Group plc.
Schroders has managed property funds since 1971 and has £10.2 billion (EUR 12.2 billion / US$ 16.3 billion) of gross property assets under management (at 31 March 2012) and has around 100 property staff located in 9 offices across the UK and Europe.
All of the property funds referred to are unauthorised collective investment schemes as defined in the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full information about these funds is only available to those exempt from the restriction.
For further information about Schroders’ property business visit www.schroderproperty.com
Schroders is a global asset management company with £199.6 billion (€238.9 billion, $310.1 billion) under management as at 31 March, 2012. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
Schroder Property Investment Management Limited and Schroder Investment Management Limited are authorised and regulated by the Financial Services Authority.
Issued by Schroder Property Investment Management Limited. Registration no. 1188240 England.