VIDEO: Indonesian inves
tor Sinar Mas Land has secured a deal to buy the Alphabeta, EC2, for £280m, a 4% yield.
The deal is expected to exchange imminently, crystallising a stellar return for Resolution Property, which has overseen a radical transformation of the City fringe block.
The 220,000 sq ft redevelopment has transformed the historic banking hall into a favourite of financially minded technology company occupiers, given its location at the intersection of the City of London and trendy Shoreditch.
Tenants in the fully let building include SEI, Silicon Valley Bank, Maxus Global, We Are Social, OpenTable, Pizza Buzz and Mendeley. Rents range from £45 per sq ft to £65 per sq ft, reflecting the movement in City fringe rental values since the debut deal in March 2014.
The lower rents on the initial leases offer the potential for substantial growth in the long term.
All leases in the building range between 10 and 15 years.
Click below for an exclusive video tour inside Resolution’s Alphabeta.
Resolution bought the building, formerly known as Triton Court, in summer 2012 for £43m from LPA receivers on behalf of HSH Nordbank, and carried out a comprehensive refurbishment and repositioning.
The building was previously owned by Jack Petchey’s Incorporated Holdings and Glenn Maud’s Propinvest.
Its transformation into a modern tech office has become symbolic of the evolution of the City’s occupier base.
Alphabeta is the second London building Sinar Mas has bought, following its June 2013 purchase of the New Brook Buildings, WC2, for £85m. The firm sold the building in December last year for £113m.
GM Real Estate and Allsop advised Resolution on the sale of Alphabeta.
