WELPUT to sell prized St James's block for £205m

By James Buckley - Monday, June 11, 2018 15:00

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WELPUT has put up for sale one of its prized assets in London’s St James’s for £205m, CoStar News can reveal.

WELPUT, the centralLondon specialist looked after by Schroders and Grafton Advisors, has instructed Colliers International and CBRE to sell the long leasehold interest in Stirling Square, an office development at 5-7 Carlton Gardens, SW1, for a net initial yield of 4.25%. The price reflects a capital value of £2,100 per sq ft and the building produces a rental income of circa £9.5m per snnum.

The prime property is multi-let to the likes of GB Gas Holdings, trading as Centrica, which agreed a deal in 2017 to relocate to the building, paying a rent of £118 per sq ft.

BAE Systems has occupied the building since it was developed and last year agreed a 10-year extension to its lease. Citigroup and KKR are also tenants in the development.

In March 2016, WELPUT agreed an early surrender of the lease to the second floor comprising 14,261 sq ft. This is the first floor to return to WELPUT’s control since the building was let in 1999. The surrender allowed WELPUT to refurbish the space to grade A in response to occupier demand.

Ker Gilchrist, director at Grafton Advisors, told CoStar News: “Stirling Square is one of the best properties in the West End, a fact we are sure will be recognised by the market. Having undertaken a number of recent management initiatives, we took the decision to sell and we plan to recycle the proceeds from the sale into other management intensive assets, as well as into the existing portfolio.”


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