A block of flats let to the London School of Economics in the heart of the West End has hit the market with a £55m price tag.
Network Housing Group has appointed Lambert Smith Hampton to sell Grosvenor House on Drury Lane, WC2, which has potential for a long-term redevelopment.
The LSE’s RPI-linked lease on the 169-flat block expires in 2027. It pays a rent of £1.6m pa.
The low passing rent is in line with the current landlord’s housing association ethos.
While the 13 years of inflation-linked income will appeal to institutional investors, the longer-term potential for a hotel or luxury residential redevelopment is expected to attract bids from a range of developers.
LSH chief executive Ezra Nahome said: “Grosvenor House has all the attributes that investors look for. It is one of the best-located student properties in central London – a market that is experiencing strong demand but is supply-constrained – and it is secured by the strong covenant of the LSE.”
Around £2bn of student housing is forecast to be placed under offer this quarter, according to JLL.
joanna.bourke@estatesgazette.com
