Government-let 21 Dartmouth Street, SW1, has been put on the market by Quadrum Global for offers in excess of £88.9m, reflecting a net initial yield of 3.75%.
Located in the heart of Westminster near to St James’s Park, the freehold property is let to the Corporate Officer of the House of Commons on a new 20-year FRI lease with a tenant option to break at year 15.
The government pays a rent of just under £3.4m pa, reflecting a low average passing rent of £64 per sq ft.
The lease provides five-yearly upward-only rent reviews and all rent-free periods are to be topped up by the vendor.
21 Dartmouth Street has undergone a refurbishment that completed in January this year and has 10 terraces totalling 6,248 sq ft.
Quadrum Global, which acquired the property in April 2014 for around £43m, has instructed Michael Elliott to search for a buyer.
CBRE and Tuckerman advised Quadrum Global on the leasing.
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