Almacantar has appointed agents to explore the potential £275m sale of 125 Shaftesbury Avenue, WC2.
CBRE has been hired to approach investors about the 190,000 sq ft block, which is mainly let to flexible workplace provider WeWork in a 20-year lease.
The disposal would be the first sale from Almacantar’s circa £2bn portfolio of central London assets designed to release capital for future developments, such as CAA House off Kingsway, WC2, a listed building that could be redeveloped into a mixed-use scheme when leases expire in 2019.
The Agnelli family-backed firm is also considering a refinancing as part of what chief executive Mike Hussey described as a “strategic review,” aided by CBRE. Hussey said that Almacantar had the option of either growing the business and holding assets via refinancing, or staying the same size and undertaking disposals to fund future acquisitions.
At the guide price of £275m, the yield is thought to be around 4.25%.
The red-brick 125 Shaftesbury Avenue is a familiar West End landmark, built in 1982. It provides 190,000 sq ft of office and shopping space across ground floor and nine upper levels, and was expected to be redeveloped by Almacantar as part of the company’s ambitious West End development programme, which also includes the residential conversion of Centre Point, WC1, and the redevelopment of Marble Arch Tower, W1.
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