Government-let Victoria office on the block for £90m

By James Buckley - Tuesday, June 12, 2018 15:00

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German investor Real I.S. has formally instructed Cushman & Wakefield to sell its government-let office development next to Parliament Square for £90m.

The building, at 14 Tothill Street in London’s Victoria, SW1, is let to The Corporate Officer of The House of Commons for a further 12.34 years.

The price for the 59,892 sq ft freehold trophy office reflects a net initial yield of 3.64% and a capital value of £1,503 per sq ft. The property produces an income of £3.5m per annum, or £58.44 per sq ft overall.

There is an outstanding October 2017 rent review and headline rents in Victoria currently stand at £85 per sq ft.

Investors are likely to be attracted to the long term asset management opportunities including re-gear, refurbishment, extension and redevelopment, subject to planning.

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