Helical has exchanged contracts to sell the former Inland Revenue tax office in Hammersmith, W14, to Workspace Group for £125.3m – a net initial yield of 4.8%.
The sale of the 150,000 sq ft property, known as the Shepherds Building, represents a 12.4% premium on its 31 March 2018 book value, at £835 per sq ft.
Helical acquired the site in 2000 for £12.8m and carried out a full refurbishment of the property.
It is 99% let to 32 different occupiers, with an average contracted rent of £45.50 per sq ft. The yield is expected to rise to 5.1% on the expiry of the tenants’ rent-free periods.
The deal is expected to complete next month.
Gerald Kaye, chief executive of Helical, said: “We took the decision to dispose of the asset as it will allow us to recycle our equity into new projects to create future profits.”
Michael Elliott advised Workspace. Tudor Toone and Cyril Leonard advised Helical.
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