PR consultancy Freud Communications has bought a West End block for its own occupation.
Matthew Freud’s eponymous firm, which counts Nike and Walker’s Crisps among its clients, has agreed to buy 55 Newman Street, W1, from Nick Leslau’s Prestbury Investments.
It is paying just over £21m for the 31,000 sq ft block, reflecting a net initial yield of 4.75%.
Freud Communications has occupied the building since 2007, paying £34 per sq ft.
However, the PR firm’s lease was set to expire in 2014 and it was expected to face a substantial increase in its rent.
According to Cluttons, rents in the area climbed by 5% in the last three months of 2011, meaning that Newman Street could have a rental value of around £44 per sq ft.
Sources added that Freud Communications was also keen to secure its future in the area, which is set to be enhanced by developments including the £750m transformation of the former Middlesex Hospital site and Great Portland Estates’ redevelopment of the Royal Mail site at 35-50 Rathbone Place.
Franc Warwick advised Prestbury on the sale; Freud Communications was unrepresented.
joanna.bourke@estatesgazette.com
