Meadow Partners has bought Helical’s C-Space, EC1, a 63,500 sq ft Shoreditch office building, for £74m.
The price agreed reflects a net initial yield of 4.6%.
Meadow Partners acquired the building at 37-45 City Road for its Meadow London core-plus fund.
Helical acquired the former carpet factory building from O’Callaghan Properties for £11.6m in June 2013. The developer subsequently obtained planning consent for its complete refurbishment to increase the floorspace from 50,000 sq ft to 63,500 sq ft.
The works, which were completed in October 2015, involved an additional floor and extensions to the third floor, a landscaped courtyard and entrance pavilion to the rear and full height glazing to the raised ground floor.
The building is fully let, with 75% of the space let to creative agency MullenLowe and 25% to technology firm NeuLion. The combined leases have a weighted average unexpired lease term in excess of 12 years.
Matthew Bonning-Snook, Helical’s property director, said: “The acquisition, refurbishment and now disposal of C-Space is a great case study illustrating what Helical does best, applying imagination to ordinary buildings to create beautiful, contemporary workspace while generating significant shareholder value. Proceeds from the disposal will go towards reducing gearing levels.”
Mike Tremayne, a principal at Meadow Partners, added: “This award-winning and iconic office buildinggives the fund exposure to London’s highly dynamic tech belt and creative submarket.
“The yield arbitrage to the City prime will ensure long-term performance and complement our growing investment platform.
“This transaction, which is now the eighth acquisition for the fund since its inception in 2014, exchanged in an exceptionally tight timeframe, and fully endorses our exemplary track record for highly swift and efficient deal execution.’’
Hall Kemp and Savills acted for Helical; Cushman & Wakefield advised Meadow Partners.
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