Advisors CBRE and Cushman & Wakefield have been mandated to sell an office in London Southbank on behalf of US firm Angelo, Gordon & Co and London-based Beltane Asset Management for a price in excess of £80 mln (€91 mln).
The two advisors will launch a global marketing campaign to find a buyer for the freehold interest in 42 Southwark Bridge Road, the two co-owners said in a press release. The building comprises 96,700 sq ft (approximately 9,000 m2) and, following a re-gear, delivers secure, long-term income let in entirety to business continuity specialists, Sungard Availability Services, until January 2028.
The property, which is strategically situated close to a number of key transport hubs including London Bridge, Southwark and Waterloo Stations, offers investors a passing rent of £4,100,000 per annum, which equates to a reversionary £42.40 per sq ft. In January 2023, there is an upwards only rent review, with a minimum uplift of 5%, which will provide the buyer with cash-on-cash returns exceeding 8%.
In addition to strong investment returns, the building offers significant future refurbishment and redevelopment potential through increased massing and various schemes have been considered for the site, Jonathan Chenery of Beltane Asset Management said.
'Given the long and secure income, freehold tenure and reversionary income together with the continued development and change occurring on the Southbank, we anticipate a high level of interest from both international and domestic investors, attracted by the high cash returns and exciting real estate options for the future.'
