A property company backed by a video games entrepreneur has bought one of the few remaining undeveloped opportunities around Old Street’s Tech City.
Shukri Shammas’s Summix ERL Developments has bought the Dial-A-Cab office next to Silicon Roundabout in Shoreditch for £23.3m.
The 0.4-acre site at 39-47 East Road, N1, was sold without planning but could accommodate a considerably taller tower to replace the existing 15,558 sq ft, five-floor office block.
When put up for sale it was expected to attract offers from residential, office or hotel developers.
A residential tower of 90 homes, assuming an average unit price of £500,000, could have a GDV of £45m to £50m. A number of 150-bedroom hotels in the same area have been put up for sale at more than £100m.
Offices in the area generally have lower values but have benefited from high demand from technology occupiers. The shortage of new-build office space means rents can exceed £55 per sq ft.
Summix is relatively unknown in the world of property development, describing itself as a “privately funded business focusing on the acquisition, planning and promotion of land throughout the UK for sustainable development across all kinds of land uses”.
Shammas, however, is well known in the tech world. He co-founded social media video games firm Playfish in 2007 and served as its chief financial officer until it was sold to Electronic Arts for $300m (£224m) in 2009.
He then set up Initial Capital, of which he remains a partner. The firm invests in seed and early-stage technology companies with a focus on games, consumer services and technology enablers. He also co-founded Glu Mobile Europe and served as its managing director.
Dial-A-Cab bought the existing 1950s building in 2006 for £3.7m, according to the Land Registry.
James Barton, residential development partner at Knight Frank, said: “The sale of Dial a Cab House is testament to the City Fringe market, and highlights the view of the City Road, Shoreditch and Old Street corridor as a sought-after location for development.”
Knight Frank advised on the sale.
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