Almacantar poised to put WeWork-let Soho block up for sale for £286.5m

By James Buckley - Tuesday, May 15, 2018 15:27

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Almacantar is set to put its prime office development in London’s Soho up for sale for £286.5m, CoStar News can reveal.

The investor has instructed CBRE and Cushman & Wakefield to bring 125 Shaftesbury Avenue to the market next week for a net initial yield of 4.25%.

The decision reverses plans to refinance the debt secured against the asset, which was taken in January of this year over a potential sale of the building. It is understood the decision to sell is being driven by a distinct lack of grade-A investment stock in London’s West End market. The property sits 100m south of Tottenham Court Road and will likely benefit from the ‘Crossrail effect’.

WeWork agreed a deal with Almacantar last summer to take 140,000 sq ft at 125 Shaftesbury Avenue on a lease until 2038, having previously committed to taking 280,000 sq ft at Almacantar’s Two Southbank Place.

In 2013, Deutsche Pfandbriefbank (PBB) funded a five-year £47.5m senior loan to finance Almacantar’s £112m acquisition 125 Shaftesbury Avenue from BlackRock UK Property Fund.

The £47.5m reflected an LTV of 42.4% for the Almacantar acquisition, priced in the low 200 basis points range.

The red brick building was built in 1982 and covers a site area of  1.2 acres close to Cambridge Circus, comprising 190,000 sq ft of office, retail and ancillary space over basement, ground and nine upper levels.

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