Private equity investor Evans Randall has completed the £33 mln (€37 mln) purchase of an office building in London which it plans to redevelop into multi-tenant, contemporary space.
The acquisition of Thavies Inn House at 3-4 Holborn Circus in London reflects a net initial yield of 4.3%. The property's annual rent roll is £1.6 mln.
Evans Randall and JR Capital are investing in the project alongside an unnamed JR Capital Middle Eastern client. The 50,500 sq ft (4,700 m2) property dates from the 1950s and was acquired from London-based asset manager Marcol.
Evans Randall said it will seek to work the income over the near term with the underlying potential for the redevelopment of the building in the longer term. The site could ultimately provide for a scheme in excess of 6,970 m2.
The transaction is in line with Evans Randall's strategy to transform older office buildings into multi-occupier, contemporary workspaces suitable for companies in the creative, media, technology, professional or financial sectors.
Kent Gardner, CEO of Evans Randall Investors said: 'The commitment we and our co-investor have made to the acquisition sends a strong signal about the enduring appeal of the London market. Even with Brexit looming, we take a very positive view on the future of Holborn-Farringdon. This micro location is gaining momentum where others may be stalling, driven not least by the transformation of Farringdon Station into a Crossrail hub opening in 2018, the development nearby of the new Goldman Sachs 63,613 m2 HQ and our own project about to commence at 90 Fetter Lane.'
