09 October 2015
Telereal Trillium is pleased to bring to market 268 – 270 High Holborn, close to Holborn Underground station.
The Telephone Exchange and British Telecommunications plc (BT) archive facility is a strong reversionary investment, generating £1.5m pa and being sold for an initial yield of 3.18%, reflecting £664 per sq ft.
The property offers superb redevelopment potential upon vacant possession and could support a number of potential uses, subject to planning. The property occupies a site area of 67,803 sq ft (6,299 sq m).
The main part of the building fronting High Holborn was originally constructed in 1927 and comprises six-storeys. A five-storey rear extension was added in 1961 and interlinks with the main building at the basement, ground and three upper floor levels. The structure of the original building and extension is reinforced concrete, with a decorative Portland stone façade.
The property is let in its entirety to BT plc, for a term of 30 years, expiring in 2031. BT are utilising vacated operational space at this specific Telephone Exchange and are due to submit a change of use application to fit-out the 1st, 2nd and 4th floors as offices, with the intention of BT reoccupying the entire building and moving 250+ personnel back into the building.
Graham Edwards, chief executive at Telereal Trillium said: “The profile of this property is unique, in that it offers a land banking situation, with a secure income stream and significant medium term redevelopment potential. The site has scope to increase the height, bulk and massing on the site, supporting a variety of alternative uses including office, retail, residential and hotel, subject to planning.”
Alistair Subba Row, senior partner at Farebrother said: “Property values in London’s Midtown area have soared over the last 18 months given the significant rental growth over the same period, low current vacancy levels of Grade A stock and limited future pipeline. Major lettings in Midtown have been to the likes of Kings College, Saatchi & Saatchi, Bird and Bird, and We Work.”
“The presence of the Midtown Business Improvement District, TfL's proposals to invest in a significant Holborn tube station upgrade, and Crossrail opening at Farringdon in 2018, have all had a positive impact on the area’s appeal. Farebrother's latest Q3 2015 research shows that vacancy rates are currently at 2.5% with property investment in Midtown this year already reaching £2.2 billion.”
Farebrother is the selling agents for this opportunity.