Standard Life is buying Kier Group’s Fitzrovia headquarters in a sale and leaseback deal for around £92.5m.
Michael Elliot and Cushman & Wakefield were appointed to seek offers in excess of £92m – a 3.4% yield – for the freehold interest in the property at 33 Foley Street, W1.
The TP Bennett-designed scheme is currently being developed, with practical completion scheduled for autumn 2017. It provides 41,883 sq ft of office space arranged over lower ground, ground and five upper floors.
Originally constructed in 1920 as a printing factory, the new design features warehouse-style spaces, exposed brickwork and large floorplates.
The building is let to Kier Group for 20 years at a total of £3,189,657 pa, reflecting £76.16 per sq ft. The rent is reviewed every five years, subject to RPI increases collared and capped at 2% and 4%.
Montagu Evans is acting for Standard Life.
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