CBRE Global Investors has acquired two offices in Tottenham Court Road and Clerkenwell for £20m.
110-113 Tottenham Court Road is a mixed use property of 16,000 sq ft, which is arranged over five levels and comprises both retail and office space. The principle tenants of the W1 office rental are Halifax bank and Adecco recruitment services.
The vendors were Messers JM Clarke and KP Mersh from the Recoveries and Receivership department of Savills consultancy. CBRE GI bought the freehold building from the receivers for £10.5m.
Meanwhile, further east in Clerkenwell, CBRE GI indentified a second property that met its clients’ investment priorities. The fund managers acquired 83 Clerkenwell Road for £9m. The 19,000 sq ft Farringdon office rental was sold by Brooke & Clerkenwell Property Limited. The entire building is leased by a single tenant with the backing of the global marketing giant WPP plc. The wholly owned subsidiary is committed to a lease that ends in the summer of 2020.
With a current rental income of £24.71/sq ft, there is an enormous potential to secure a major uplift at the next rent review, as market rents are estimated to be closer to £40/sq ft.
CBRE GI’s head of separate accounts, Michael Ness said: “We believe that these two acquisitions will be major beneficiaries of the Crossrail development, as infrastructure improvements are already adding to the commercial attractiveness of both Clerkenwell and the Tottenham Court Road area.”