The Mayfair private members’ club for KPMG partners and clients has been put up for sale.
Knight Frank has been appointed to market the five-storey building, at 20 Grosvenor Street, W1, on behalf of Grosvenor, which is seeking offers in excess of £95m.
The price for the 125-year long leasehold interest reflects a 3.8% yield.
The townhouse was opened last year to entertain clients in the West End and includes business lounges, a hotel, bar and restaurant. KPMG is headquartered in Canary Wharf and the club provides a meeting place for clients that want to meet more centrally.
The 43,000 sq ft building was let to the firm on a 15-year term expiring in February 2030, with a break in 2025. The property generates £4.3m per annum in rent, equivalent to around £104 per sq ft.
The lease is subject to upwards-only rent reviews, and with current demand outstripping supply in Mayfair, it provides investors the opportunity to capitalise on potential rental growth in 2020.
Recent high-profile developments such as 8 St James’s Square, W1, have achieved rents up to £185 per sq ft.
Part of the ground and lower ground floor levels of 20 Grosvenor is let to The Refinery, a luxury men’s barber and spa, for a term of 10 years from 25 June 2015 at £83.85 per sq ft.
Craig McWilliam, executive director, London estate at Grosvenor Britain & Ireland, said: “We intend to use the proceeds from 20 Grosvenor Street to continue Mayfair’s evolution, investing in projects which enhance the area as a great place to live, work and visit.”
To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette
