Criterion Capital has completed on the sale of its East India Dock Estate to LaSalle Investment Management and Trilogy Property Advisers for £170m, representing a yield of 3.9%.
The 6.4-acre site consists of four multi-let office buildings totalling 591,090 sq ft. They produce an income of £7,031,822 pa, with an average weighted expiry term of just over three years. Tenants include the London Borough of Tower Hamlets, Sungard and Pershing.
The pair bought the site through a JPUT which will be jointly managed. They said they will refurbish and reposition East India Dock as an alternative for occupiers priced out of traditional office locations.
Criterion Capital bought the estate in 2006 with the intention of converting it into it into a 1,389-home residential scheme operated under its Miflats management platform.
However, planning was refused, and Criterion said that rather than appeal it intends to redeploy its resources to growing its build-to-rent residential development and investment activity.
Karl Elliott of Criterion Capital said: “Although it is disappointing not to have achieved change of use, a timely disposal does allow us to redeploy resource into new oven ready built-to-rent sites and opportunities.”
Criterion Capital was advised by Savills and Michael Elliott; LaSalle Investment Management was represented by Allsop.
Chris Lewis, head of transaction support, LaSalle Investment Management, said: “We want to provide a viable alternative for occupiers priced out of more traditional business locations and previously affordable hubs, such as Shoreditch. We are pleased to be working with the experienced team at Trilogy to deliver this vision.”
