Percussion Properties has paid a record £1,647 per sq ft for an office building in Hoxton Square, N1, as demand for development opportunities in the City fringe intensifies.
The company, understood to be owned by Aviva Investors, bought 43-44 Hoxton Square, a 5,160 sq ft short-let office block, for £8.5m.
Richard Susskind & Co director Ashley Goodman, who advised the private vendor, said: “Values have jumped rapidly. Investors see rents rising, and Hoxton Square remains at the epicentre of an area benefitting from a lot of improvements.”
Capital values on the square, which is a popular location for bars and restaurants catering to the area’s affluent young tech and media workers, have rocketed over the past four years.
Self-contained office building 20-21 Hoxton Square sold for £5m in July 2012, a capital value per sq ft of £473.
At the start of last year the sale of 33-35 Hoxton Square for £12.1m reflected a capital value per sq ft of £927, suggesting capital values had more than doubled in a 30-month period.
This latest sale suggests the pace of growth has accelerated significantly again.
