Two prime City office buildings have been put on the market for a total of £280m, despite fears of a slowdown due to uncertainty over Brexit and turmoil of global markets.
Aerium has instructed CBRE to sell the leasehold of 1 Wood Street, EC2, for £190m – a 4% yield.
The 184,184 sq ft building is let to Eversheds on a lease expiring in 2024, of which 23,000 sq ft is sublet to financial services firm Nord LB.
Rental income is £46.90 per sq ft, equating to a passing rent of £8.7m pa.
The yield is due to rise above 5% after a 2018 rent review.
Royal London Asset Management has instructed GM Real Estate to sell the freehold of 80 Cheapside, EC2, for £90.3m – a net initial yield of 5.3%.
The 94,000 sq ft building comprises 74,000 sq ft of offices and a 20,000 sq ft ground-floor shop let to Tesco.
Rent is £51.80 per sq ft, equating to a passing rent of £4.9m pa.
The offices are multi-let to tenants including Japan Bank for International Cooperation, property management company Places for People and insurance company Liverpool Victoria.
Twenty-five properties valued at a total of £2.2bn are currently under offer in the City, according to Knight Frank. A further 59 properties are on the market for a combined asking price of £2.9bn.
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