Kaupthing has put its 50% stake in Fitzroy Place up for sale for £225m.
The Icelandic bank has appointed CBRE to sell its share of the development which it owns in joint venture with Aviva Investors. The price for the half share reflects a yield of close to 4%.
Fitzroy Place includes 220,000 sq ft of offices across two buildings, all but one floor of which is let or under offer. 1 Fitzroy Place, the larger 140,000 sq ft building is the new UK headquarters of Estée Lauder.
The 20,000 sq ft leisure space at the development is let to Percy & Founders, part of the Cubitt Pubs Group; The Larder and The Detox Kitchen.
From May: First look: Inside Fitzroy Place
The development has been managed by Exemplar since it bought into the scheme with Aviva in 2009 in a £156m deal. The scheme on the site of the former Middlesex Hospital was previously known as NoHo Square and was being developed by the Candy brothers’ CPC Group and Richard Caring but fell into distress after the onset of the financial crisis.
The sale will allow Kaupthing, which was nationalised in 2008, to exit the scheme following the completion of the business plan for the development. All but one of the 235 flats developed at the project have already been sold.
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