Evans Randall Investors has completed the £40m acquisition of Amazon’s offices at 26-28 Glasshouse Yard, EC1 from Columbia Threadneedle.
Amazon fully occupies the 47,500 sq ft building and uses the space as recording studios for its audio books business and as an incubator for new businesses. It has 4.5 years remaining on the lease. The sale price reflects a net initial yield of 4.3%, with a revisionary yield of 6.1%. The property’s annual rent roll is £1.8m, with very low passing rents of £38 per sq ft.
Evans Randall Investors moved quickly to secure the transaction and exchanged on the purchase in 10 days, with completion shortly after.
The open plan Midtown office building, which was refurbished in 2012, is less than 300m from the eastern entrance of the Farringdon Elizabeth Line station, due to open in December.
Paul Kendrick, chief investment officer of Evans Randall Investors said: “We are very pleased to have completed on this building with exceptional potential and look forward to unlocking its value in the longer term. Glasshouse Yard is a high-quality workspace, strongly let and located in an area which is gaining significant momentum.”
The purchase of Glasshouse Yard follows two other Midtown acquisitions by Evans Randall Investors in the past two years: Thavies Inn House at 3-4 Holborn Circus, EC1, and Bureau at 90 Fetter Lane, EC4. The purchase aligns with the investor’s strategy to invest in central London office space suitable for companies in the creative, media, technology, professional or financial sectors.
Michael Elliott advised Columbia Threadneedle.
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