An office investment in Tottenham, N17, which would have been offered in Allsop’s May auction, has been sold within just four days for £7m.
The asset sold by Courtenay Investments achieved a net initial yield of 4.75%, which showed a capital value of approximately £350 per sq ft. The office investment at 640-656 High Road sold to a UK investor.
The 19,992 sq ft office built in 1973 is currently a Job Centre and is entirely let to the Secretary of State for Housing, Communities and Local Government with eight years unexpired on the lease at a current rent of £354,858 pa.
The investment was marketed seeking offers in excess of £6.5m with a NIY of 5.1% and would have been offered at Allsop’s forthcoming May commercial auction had a sale not taken place prior. The sale was transacted through Allsop’s Hybrid method – a partnership between its national investment and auction teams. This method offers vendors who are looking for certainty of sale the opportunity to sell the property on an auction contract but with the benefit of a short private treaty marketing campaign.
The property received over 100 phone enquiries and in excess of 30,000 downloads of the sales details in the first three days of marketing. It attracted strong interest from foreign territories including Hong Kong, Singapore, Israel and Germany.
Alex Butler, partner, national investment at Allsop, said: “Despite the current challenging market conditions, we received an overwhelming response for this asset. Not only did the property go under offer and exchange in just four days, it sold significantly above the asking price. The sale demonstrates there is still appetite in the market for strong performing assets with secure income and how Allsop’s Hybrid approach can provide a certainty of sale for our clients.”
Richard Osband, director at Courtenay Investments, said: “The sale achieved an excellent price and in just days of the property going to market. We are now looking to the future, post lockdown, with the funds raised to be invested in a flexible workplace joint venture with x+why. The first flexible office, Huguenot Place, E1, strategically located near the City in the trendy area of Brick Lane and Spitalfields Market, has recently opened and already has a take up of 80% of membership.”
Allsop acted on behalf of the vendor and Landswood de Coy acted for the purchaser.
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