Stenprop, the UK multi-let industrial property investor, is to market for sale its London property asset, Euston House, continuing its strategy to focus on multi-let industrial opportunities.
Gerald Eve is the retained agent and is quoting in excess of £90 million for the freehold, reflecting an attractive initial yield of 4.9%. Lloyd Davies, partner at Gerald Eve who is leading the sale process, suggests that this is “one of the most attractive value-add opportunities to come to the market in recent years offering short, medium and longer-term reversionary possibilities in an exciting area of significant regeneration”.
The striking Art Deco building is strategically located adjacent to Euston Station and offers interested parties the opportunity to invest in one of the most exciting growth areas of the London commercial property market.
Euston Station itself is the centrepiece for the Euston Area Plan, where 54 acres around the station are subject to an ambitious regeneration project being implemented by Camden Council. Euston House will benefit directly from these infrastructure improvements as well as being close to the HS2 hub and proposed Crossrail 2 interchange.
The 113,000 sq ft office building is fully let at an average rent of just £40psf to the likes of Siemens PLC, Learning Tree International and i2 Offices. Investors will be able to action significant asset management initiatives, either with the existing tenants in place or utilising a potential ‘block’ lease expiry date in 2022. The current building could at that point be significantly upgraded and extended to take advantage of the improving Euston market. Nearby King’s Cross has already been transformed, with office developments there attracting tenants of the calibre of Google and Facebook at record rents, and Euston is predicted to follow suit.
Watch the Euston House marketing video here: https://goo.gl/5gkDkY
Read the Property Week story on Euston House being brought to market here: https://goo.gl/ES73Hd