Orchard Street Investment Management has bought Diamond House at 36-38 Hatton Garden, EC1, for £28.8m – a net initial yield of 4.66%.
The 25,226 sq ft office and retail building was acquired from Dorrington on behalf of St James’s Place UK. The freehold building is spread over five floors, with retail on the ground floor and a two-storey annex to the rear. It has been refurbished to provide warehouse-style workspace with multiple roof terraces.
The building is fully let, with traditional Hatton Garden retailers occupying the ground floor and seven office tenants on the upper floors of the scheme, reflecting a weighted average lease term of 6.4 years.
Tom Chadwick, associate partner at Orchard Street, said: “The property offers great warehouse-style office space, which appeals to the creative industries and is well positioned for further growth.”
Bruce Thompson, director at Dorrington, said: “There was a lot of interest in this property from the minute it hit the market. Our refurbishment and repositioning of the building has repeatedly broken records for office rents in the area and the successful sale reflects both the quality of the product and the continued investor demand for London.”
Orchard Street was advised by CBRE; Dorrington was represented by Michael Elliot.
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