Hermes Investment Management and Canadian Pension Plan Investment Board are looking to sell Aldgate House, EC3, for £175m, respresenting a net initial yield of 5.25%.
The 211,855 sq ft building next door to Aldgate Underground station is let to four tenants – clearing house LCH, fit-out contractor ISG, and tech firms Taboola Europe and Transperfect Translations – generates more than £9m per year in rent at an average of £ 43.50 per sq ft.
The weighted average unexpired lease term is 7.4 years to expiry and 5.4 years to breaks.
The property is understood to have a number of asset management opportunities including the ongoing refurbishment of the office floors and the potential to create more space by converting unused areas in the basement, which has planning for the creation of a 9,332 sq ft gym, and at ground and mezzanine levels the creation of a 7,318 sq ft restaurant.
There is also the potential to create additional space at the top of the building although the building does fall within a protected vista under the London View Management Framework, so any additional height to the building would need to be designed with this in mind.
Corbett Northam and JLL have been appointed to advise the vendors.
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