Hampshire County Council has bought the Superunion building in Farringdon, EC1, for £29.6m from Canada Life Investments.
The 35,025 sq ft office at 6 Brewhouse Yard is let to Superunion, with a guarantee from WPP Group UK on a lease expiring in October 2028.
Superunion currently pays an annual rent of £994,691. Its lease is subject to a five-yearly rent review to RPI with a cap of 4% and a collar of 1% per annum. The next review coincides with a tenant break option in October 2023.
Michael White, head of UK property at Canada Life Investments, said: “We have seen office rental values increase to upwards of £65 per sq ft in Farringdon and Clerkenwell since we acquired this building in 2014. The asset has performed very well and above its benchmark, and we felt it was an appropriate time to sell the property as we direct the ACS more toward a value-add asset management strategy.”
The council purchased the office on behalf of the Hampshire Pension Fund.
Canada Life Investments sold the property on behalf of the LF Canlife UK Property ACS.
Crossland Otter Hunt advised Canada Life Investments and Michael Elliot advised CBRE GI, which acted for the purchasers.
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
