Corpus Sireo buys WeWork-let City block

By James Buckley - Tuesday, May 10, 2016 14:44

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German investor Corpus Sireo has bought a City office block let to WeWork, in what is the first test case of the strength of the co-working group’s covenant, CoStar News can reveal.

Corpus Sireo has completed an off market deal to buy Angelo Gordon’s 150-year long leasehold interest in 33 Queen Street, EC4, for £40m, reflecting a yield of 5%. The price equates to a capital value of £1,021 per sq ft.

The deal represents the first time WeWork’s covenant has been successfully traded in London. In Midtown, Kildaire has been trying to sell Fox Court on Grays Inn Road, a building majority let to WeWork, but has yet to find a buyer. WeWork is also the main tenant in Moor Place, 1 Fore Street, EC2, an asset not thought to be considered a long term hold for owner Brookfield. 

Thirty-three Queen Street, asset managed by Beltane Asset Management, comprises 52,600 sq ft of newly refurbished grade A office space arranged over basement, ground and five upper floors.

WeWork occupies floors one to five on a new 20-year lease from practical completion at £60 per sq ft overall.

The ground & basement has effectively been sold off on a 150-year long lease to London Chamber of Commerce & Industry.

JLL advised Corpus Sireo.

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