Acai Group launches Midtown mixed-use sale

Acai Group, the Gabbay family’s private investment firm, has launched the sale of Swan House, a mixed-use asset in London’s Midtown submarket, inviting offers in excess of £18m. The 20,287 sq ft building located at 37-39 High Holborn, WC1, is comprised of 14,052 sq ft of offices, spread over the building’s first and sixth floors, and 6,235 sq ft of retail across the building’s ground and lower ground floors. Originally built in the 1950s, Acai Group invested £2m of capital expenditure in the building between 2021-2023 and say there would be minimal further short-term capital requirements hereafter. The building brings in a rental income of £1,888,394 annually, which works out to a reversionary rent of £64.47 per sq ft on the offices, which are currently multi-let to five tenants. Hanover Green have highlighted the potential to drive further rental performance through the provision of a managed office solution, enabling the building’s owners to charge a rental premium. The sixth floor of the building is vacant but would be subject to a vendor rent guarantee for a year. The building has already achieved EPC B on its office space but is being marketed as a potential opportunity to add additional massing via an additional storey providing a seventh floor or a communal terrace. Agents Hanover Green have been appointed to lead the sale. Image: © Graphicks