Private equity real estate firm Henderson Park has acquired 100 Leman Street from abdrn for £60 mln (€70 mln) on behalf of Henderson Park Real Estate Fund I.
The modern office property offers Henderson Park medium term potential to undertake a series of asset management initiatives to add amenities, outdoor space and improve the building’s sustainability credentials further, the firm said.
100 Leman Street is located in Aldgate, to the east of the City of London, which has experienced a dramatic transformation over the past five years as an innovation and enterprise hotspot for major tech and media companies looking for large floor plates, as well as finance and professional services firms.
As part of Tech City, the area is identified within City Hall’s London Plan 2021 as a nationally significant office location, and one that is expected to benefit from ongoing government support and cultivation.
In keeping with its location, the property’s two main tenants are Exponential-e, a technology company that provides cybersecurity prevention services, and Forward 3D, a digital marketing agency; both have strong covenants.
The 95,000 ft2 (8,825 m2) office building comprises seven upper floors with natural light and flexible floor plates, while the basement level includes changing rooms, showers and bicycle facilities. It also has an extensive seventh floor roof terrace where a communal roof garden is planned.
The property also offers longer term potential for a full refurbishment and an extension of the western elevation, including the construction of an eighth floor, subject to the necessary consents, adding up to c. 50,000 ft2 of office space. ESG will be at the heart of this process, with the aim of securing a BREEAM Excellent certification through the improvement the of building’s energy efficiency, reducing its carbon footprint and installing low water consumption bathrooms.
100 Leman Street is currently 100% let and has a weighted average lease term of 3.75 years with all leases due to expire in June 2025.
Mrinal Jalan, managing director at Henderson Park, commented: 'Aldgate has seen substantial recent investment and firmly established itself as both a hive of innovation and as a core City of London office district, particularly in the tech, media and life sciences sectors. Working patterns undoubtedly changed over the last year, but we have found that demand for high quality, well located office space has remained robust.
'100 Leman Street provides high quality, modern space, while the potential to extend the asset offers an exciting opportunity to create additional value in the longer term. We hope to further improve the environmental credentials, working with our occupiers to help them maximise the benefits of our extensive ESG proposals as part of our wider refurbishment plans.
'We have a strong conviction in London’s future prospects as a global centre of business and in this property’s ability to deliver an attractive return for our investors.'
Henderson Park has purchased 100 Leman Street with Dukelease, which is their second deal together following the acquisition of Ibex House in 2019.
abrdn was advised by Allsop.
