Terrace Hill sells Covent Garden project for EUR 18m

UK property developer and investor Terrace Hill said on Friday that it has sold the freehold interest in its Kean House development in Covent Garden, London to a major UK institution for a total of £16 mln (EUR 18 mln). The investment volume reflects a net initial yield of 6.4%.

Situated on the eastern boundary of London's Covent Garden, the property offers 26,000 square feet (2,500 m2) of prime office space arranged over a basement and nine upper-storeys, together with two retail units. Completed by Terrace Hill in November 2007, the property is multi-let to a number of tenants, including Barrow Cadbury Trust and Virgin Green Fund (VGF Advisors UK). The retail units are occupied by Costa Coffee and Adecco.

The sale follows the recent re-letting of the entire fifth floor of the building, comprising 2,993 sq ft, to ChannelAdvisor. Currently just one floor remains vacant at the building, totalling 2,953 sq ft on the third floor, Terrace Hill said.

'This sale demonstrates that there is strong demand in the market for good quality, well managed assets particularly central London offices,' said CEO Philip Leech. 'The disposal will allow us to recycle the capital into profitable new projects, further enhancing our shareholder’s capital invested in our business.'

Doherty Baines acted for the purchaser and Terrace Hill represented itself.