IVG has decided to sell the West End HQ of global BHP Billiton for £100m – a 5% net initial yield.
On behalf of the Euro Select Fund 8, IVG has appointed Colliers International to sell 117,000 sq ft 1 Neathouse Place, SW1.
The large office block will offer large refurbishment opportunities when global resources firm BHP’s lease expires in 2017.
Rents are currently £51 per sq ft meaning there is scope for significant rental growth in line with other Victoria rents.
Prime office rents in the area stood at £72.50 per sq ft last year, and could rise to £90 per sq ft by 2018 Colliers International has forecast.
Recent deals at the property include a sublet of 9,350 sq ft to energy company Eni. DTZ and Cluttons are also marketing floors four and five on behalf of BHP Billiton.
joanna.bourke@estatesgazette.com
