New York-based Alfred Equities has put One Alie Street, E1, up for sale for £98.5m.
The sale price reflects a net initial yield of 5.24% and a capital value of £906 per sq ft.
Knight Frank, Cushman & Wakefield and Noble Harris have been appointed to find a buyer for the six-storey property, which is close to BT’s soon-to-be new headquarters at the 18-storey building, One Braham.
The building’s 108,702 sq ft of space is let to eight tenants including Samsara, Kuoni Global Travel Services and Thread Online and produces a total passing rent of £5.53m per year. The weighted average unexpired lease term is 6.27 years to expiries and 3.5 years to earliest determinations.
Around 145 years are left on the property’s long lease from freeholder the City of London and it is subject to a gearing of 5% of rents receivable with a minimum ground rent of £150,000 per annum.
It occupies a prominent corner of Aldgate and has been subject to a rolling refurbishment programme since 2016 with £11.3m invested.
A feasibility study undertaken by architect Gensler shows scope to add around 70,298 sq ft to the net internal area through additional massing and reconfiguration of the existing floorplates and reception.
Gensler has also said with further site acquisition, a new 493,632 sq ft scheme could be built.
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