Nick Leslau’s Max Property Group is under offer to buy the High Holborn Estate, WC1, following a fierce bidding process.
Advised by Franc Warwick, Leslau emerged from a field of 18 bidders to secure the mixed-use estate for just above the asking price of £45m, which would have reflected a yield of 4.65%.
The 0.92-acre estate, which is made up of nine self-contained buildings totalling 147,689 sq ft, has planning consent for a mixed-use redevelopment of approximately 205,000 sq ft.
It is multi-let to 65 tenants on predominantly short-term leases with landlord break options allowing for the implementation of the planning consent or refurbishment of the existing buildings.
Current income is approximately £2.21m pa, which equates to £14.98 per sq ft overall.
Leslau is expected to pursue a strategy of increasing the very low rents in the short-term through a programme of rolling refurbishments.
A wholesale redevelopment remains possible in the long term; however, it is likely the company would seek a new planning consent.
Irish consortium the Holborn Property Unit Trust appointed Allsop and CBRE to sell the estate earlier this year.
The sale process is understood to have attracted considerable interest, despite taking place in the traditionally quiet summer period.
Three parties were brought forward following the first round of bids on 8 August, with Leslau agreeing heads of terms earlier this week.
The buildings on the site include 50-57 High Holborn, including Brownlow House, High Holborn House and Caroline House, 18-25 Hand Court, 45-51 Bedford Row and Brownlow Street.
Dublin based vehicle HPUT bought the site from Alfred Buller’s Bee Bee Developments for around £45m in 2006.
They initially submitted plans for a redevelopment in 2008 which included 28 homes and 22 student flats alongside the office space.
Bee Bee had considered redeveloping the site as a 400,000 sq ft office led scheme to rival the neighbouring Mid City Place but planning was eventually granted for a scaled back scheme with more affordable housing, following advise from Camden.
All parties declined to comment.
jack.sidders@estatesgazette.com
