Brockton Everlast and Quoinstone Investment Management have bought Telephone House in Shoreditch from a private investor in an off-market transaction, for around £106m.
Telephone House is a prominent freehold headquarters office building of 124,000 sq ft in the heart of Shoreditch, located on a 0.95 acre island site overlooking Leonard Circus. The building is 100% let to a number of technology, media and fashion businesses, and produces a low passing rent of £4.7m per annum, which equates to £38 per sq ft.
Around 17% of the rent roll is leased to Karen Millen, whose fashion business was recently acquired by Boohoo following a pre-packaged administration. Brockton said that given the low passing rent on this element of the building, any space which might revert back to the landlord is likely to be accretive to the asset’s value.
Max Bassadone, director of Brockton Everlast, said: “The building has been in the same ownership for over 20 years, and presents excellent opportunities for repositioning with a low site coverage of 43%. The inbuilt reversion will only be magnified by the significant improvements planned for Old Street roundabout and various major developments with planning in the immediate area.
“Shoreditch is one of central London’s most exciting sub-markets, attracting a diverse occupier base and entirely representative of our long-term investment strategy of acquiring and improving landmark office buildings in well-connected and evolving London sub-markets.”
Brockton Everlast and Quoinstone were advised by CMS, with debt advice from HSF and Eastdil Secured. The vendor was advised by TTG Partners, with legal advice from DAC Beachcroft.
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