Threadneedle is selling a rare portfolio of warehouse-style office buildings in Camden, NW1, for offers in excess of £98m – a 5.5% yield.
The investor instructed CBRE to market the Centro Buildings, a collection of five assets, which total 131,129 sq ft across 1.1 acres.
The portfolio comprises Centro 3, 4 and 5, Atelier House and Selous House which sit on a triple aspect plot bounded by Camden Street, NW1, Mandela Street, NW1, and Pratt Street, NW1, between Mornington Crescent and Camden Town tube stations.
The opportunity is expected to draw interest from investors looking to capitalise on north London’s soaring rents and growing reputation as a tech and media hotspot.
Regarded as a hub for creative businesses, the area is home to MTV, Warner Bros and Viacom, as well as fashion retailers Hugo Boss, French Connection and Asos, which all occupy large offices nearby.
The buildings are also a mile away from Kings Cross, where London’s largest regeneration project has fuelled demand from companies such as Google, Universal Music and New Look, which have established headquarters there – and where rents are upwards of £80 per sq ft.
The properties are multi-let to 16 tenants, including Frank PR and Win Technologies, producing £5,802,468 pa and an average of £43.95 per sq ft. The weighted average unexpired lease term is 7.8 years to expiry and 6.3 years to break.
There is further opportunity to create value by selling individual buildings and portfolios or redeveloping in 2025 when the longest lease, Win Technologies’, expires.
The buildings were originally home to the Maples furniture depository which was converted in phases from 2000 to provide office and showroom space.
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