Two mixed-use Marylebone blocks have hit the market for £19.5m.
Hanover Green has been instructed to sell the long leasehold interest of 37/38 Margaret Street, W1, and 21/22 Great Castle Street, W1, on behalf of a private client. The asking price reflects a blended initial return of 4.51%.
The two properties comprise 18,312 sq ft of office and retail space, extending over basement, ground and three to four upper floors.
The properties are held by way of a long leasehold interest from the Howard de Walden Estate for a term of 175 years with around 150 years unexpired, subject to a 10% ground rent geared to rents receivable.
Both properties are multi-let to tenants including restaurant and bar Meat Liquor, boutique investment and asset management agency Landswood de Coy and Stretch Communications, and have a weighted unexpired lease term of 8.55 years.
The restaurant tenants account for 65% of the overall rent, and the premises come with a 3am licence on the Meat Liquor bar and restaurant unit on Margaret Street.
The offices are multi-let at rents reflecting an overall average of £45.07 per sq ft.
Total gross income for the site, which also provides redevelopment opportunities subject to planning, is £1,051,875 per annum, reflecting a net rent of £937,888 per annum after deducting the head rent. The current ground rent is £46,428 per annum.
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