Resolution Property is preparing to put up for sale Alphabeta, EC2, the tech-oriented City fringe office block. It is expected to attract bids of more than £250m – a sub-4.5% yield.
The fund manager will shortly appoint Allsop and GM Real Estate to market the 220,000 sq ft former banking hall, which has been transformed into a cutting-edge office-led development.
Tenants in the fully-let building include SEI, Silicon Valley Bank, Maxus Global, We Are Social, OpenTable, Pizza Buzz and Mendeley. Rents range from £45 per sq ft to £65 per sq ft, reflecting the movement in City fringe rental values since the debut deal in March 2014.
Alphabeta is the first of a new generation of major office developments on the northern edge of the City which have sought to capitalise on the increase in tech firms seeking premium space on the fringes of the Square Mile.
The sale will be watched closely by developers of rival schemes, including Brookfield, Helical Bar with Crosstree, and British Land, each of whom have major schemes on the northern City fringe, and it is expected to attract interest from a wide range of investors keen to gain exposure to the tech sector.
The lower rents on the initial leases offer the potential for substantial growth in the long term.
All leases in the building range between 10 and 15 years.
Resolution bought the building, formerly known as Triton Court, in summer 2012 for £43m from LPA receivers on behalf of HSH Nordbank, and carried out a comprehensive refurbishment and repositioning.
The building was previously owned by Jack Petchey’s Incorporated Holdings and Glenn Maud’s Propinvest. Its transformation into a modern tech office has become symbolic of the evolution of the City’s occupier base.
jack.sidders@estatesgazette.com
