Aviva Investors is targeting another expansion of its office portfolio in east London as it nears a £42m deal to buy Curtain House, a Grade II listed former Victorian warehouse turned office building in Shoreditch, EC2.
The insurance giant’s investment arm is under offer on the block, which includes around 40,400 sq ft of office space above a Blues Kitchen venue on the ground floor, in a deal which would see it just miss the £43.5m guide price, EG understands.
The freehold site, which is currently owned by UK-registered holding company Curtain House Ltd, comes with planning consent for a part-redevelopment granted in March 2020 by Hackney Council.
Originally built in phases between 1881 and 1887 for a furniture-making company, Curtain House was later converted into a music hall, before becoming the restaurant and live venue with offices above that it is today.
The planning consent would give developers the chance to revamp the office reception area, fill in existing light wells and build an extension at the back – an unlisted section of the site – with a new basement.
That scheme would nudge the office floorspace up to 41,123 sq ft while retaining the 13,000 sq ft Blues Kitchen space, which holds a 3am licence on Fridays and Saturdays.
Marketing documents also outline two other development options, which would mean keeping the existing frame of the building and completing a full refurbishment, or carrying out only certain parts of the consented scheme.
The investor already includes a cluster of sites around Hoxton Square, which were bought and revamped over the past decade to house digital-led projects designed to diversify the company, while actuaries working for its core insurance business remained in the City.
It would also follow the sales of the nearby Lever Building and Saffron House, both EC1, earlier this year for £38.5m and £78.3m respectively. These reflected capital values of £1,257 per sq ft and £1,073 per sq ft, compared with Curtain House’s guide price which reflects £803 per sq ft.
Agencies Michael Elliott and Ellis Brown are acting for the seller, while Compton is acting for Aviva. All parties declined to comment.
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