UK Commercial Property Trust has appointed Crossland Otter Hunt to market the freehold home of a St James’s art gallery for £40m – a 3% yield.
The corner block, at 6 Arlington Street, SW1, is due to house the Skarstedt Gallery, which is moving from its current premises at 23 Old Bond Street, W1, to facilitate its expansion.
There are offices on floors one to four and flats on the fifth floor.
The 18,000 sq ft, five-storey townhouse is fully let and generates around £1.2m pa from tenants including the governments of the Cayman Islands and Bermuda.
There is a short-term opportunity to increase rents with a rent review on the first floor, currently let at £63.19 per sq ft, and mutual break options on the fourth and second floors in August and November at rents of £76 per sq ft and £61.67 per sq ft respectively.
Headline rents in Mayfair and St James’s are between £120 and £150 per sq ft.
The first to fourth floors also have consent for conversion to six luxury flats, with vacant possession attainable in August.
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