UK investment manager Titan Investors has reached a deal with Derwent London to acquire Turnmill EC1 for £77.4 mln (€90 mln).
The sale represents a net initial yield of 4.9%, with a rent review in 2025, a capital value of £1,100 per ft2 and is at a small premium to the December 2023 book value.
The 70,300 ft2 (6,530 m2) office property at 63 Clerkenwell Road was built in 2015, on the site of the former Turnmills nightclub, after architect Piercy & Co advised that the existing warehouse-type structure was not suitable for retrofitting.
The resulting building includes 58,000 ft2 of office space on the upper floors and around 12,300 ft2 of ground floor retail. The office element is let to Publicis Groupe, at a passing rent of £4 mln, on a lease expiring in 2035, with a tenant break in 2033.
Paul Williams, chief executive of Derwent London, said: 'This disposal crystallises an attractive 9.1% IRR for the group as the London office investment market reopens.
'Proceeds will be recycled into our two exciting on-site net zero carbon West End developments, 25 Baker Street W1 and Network W1, which together total 437,000 ft2, while enhancing our financial capacity as opportunities are beginning to emerge.”
Clerkenwell currently benefits from access to the recently opened Elizabeth line at nearby Farringdon station.
