Chinese real estate investor Poly Developments and Holdings Co. is understood to have cancelled the sale of 5 Fleet Place in London after interest fell short of the landlord’s expectations.
Poly had mandated broker JLL back in February to sell the freehold office with an asking price of £182.5 mln (€204 mln), reflecting a net initial yield of 4.17%.
The landmark 130,000 sq ft (12,000 m2) Grade A office building is located within the City of London and is part of the internationally recognised Fleet Place Estate. The location is set to be enhanced further with the delivery of Crossrail at Farringdon station.
5 Fleet Place is home to the headquarters of law firm, Charles Russell Speechlys, who have been in occupation since 2008 and have a lease until December 2031, without break. The property produces a topped up annual passing rent of circa £7.75 mln, reflecting circa £59.50 per sq ft with an overall unexpired lease term of 9.95 years.
There are currently two vacant office floors which are subject to a rental top up and are part of Poly’s refurbishment programme.
Poly bought the asset back in 2016 in its maiden UK acquisition from sovereign wealth fund Abu Dhabi Investment Authority (ADIA) for €145 mln.
