Schroders has put an asset in Whitechapel up for sale, inviting offers of just over £44m at a net initial yield of 6.5%.
The offices on the ground and upper three floors at Department W, an 85,696 sq ft, four-storey building located at 69-89 Mile End Road, E1, are let to Queen Mary University of London, totalling 55,380 sq ft of workspace.
The Russell Group university has more than 33,000 students and almost 4,500 staff, generating turnover of more than £679.8m.
The lease, which expires in mid-2035, makes up 80% of the total income for the asset at a rent of £44.28 per sq ft or just under £2.5m per year.
The three retail units on the ground and basement floors amount to 30,317 sq ft of space and are let to Tesco Stores, Sportsdirect.com and The Gym Ltd. The weighted average length of the leases stands at 10.6 years.
Together the retail leases produce £622,677 per year at a rent price of £20.54 per sq ft.
Agents Allsop have been appointed to market the asset.
