Addington Capital and BauMont Real Estate Capital have completed the purchase of Old Change House, 128 Queen Victoria Street, EC4, for £23m – a 6.55% yield.
The 56,814 sq ft office building was bought from Delancey, acting on behalf of Coal Pension Properties.
The block, which includes 3,732 sq ft of ground-floor retail let to Pret a Manger and Nusa Kitchen, is 61% occupied, with office tenants including Walker Crips, GB Group, EZE Software EMEA and the Monetary Authority of Singapore.
The building was constructed by Japanese developer Nissho Iwai in 1997, before being acquired by Coal Pension Properties in 2000.
BauMont and Addington said the purchase provided an “outstanding opportunity” to complete the refurbishment of the building to create “best in class” Cat A specified offices, with enhanced ESG credentials.
The pair said the refurbishment was well timed to take advantage of a shortage in quality office space in the City.
Martin Roberts, principal at Addington Capital, said: “The opportunity to undertake a rolling refurbishment programme of an income producing asset like Old Change House offers attractive risk adjusted returns.
“We are actively pursuing similar ‘brown to green’ projects across central London, allowing us to upgrade buildings with strong fundamentals to create the high quality, ESG-compliant space, sought after by today’s occupiers.
“We believe that there will be other similar opportunities over the coming months.”
Knight Frank advised Delancey; Savills acted for Addington.
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