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High Holborn Telephone Exchange sold to Institutional Investor for £42.7m

High Holborn Telephone Exchange sold to Institutional Investor for £42.7m

08 February 2016

Telereal Trillium has completed the sale of 268 - 270 High Holborn to a UK Pension Fund for £42.7m, reflecting a Net Initial Yield of 3.4% and a capital value of £630 per sq. ft. 

The operational BT telephone exchange, close to Holborn Underground station, provided a rare opportunity to acquire a stable and secure Midtown investment with long-term redevelopment potential.

The six-storey property is a purpose built telephone exchange with ancillary archive, storage and office accommodation totalling some 67,800 sq. ft. (6,299 sq. m.) on a half acre site. It is let in its entirety to BT plc for an initial term of 30 years, expiring in 2031.

Telereal Trillium acquired the property in 2001 as part of its strategic property partnership with BT plc.

Graham Edwards, CEO at Telereal Trillium said: “Telereal Trillium always looks to add value for ourselves and our partners. By working with BT, we were able re-gear this lease and thereby create an investment that is attractive to institutional purchasers.”

Farebrother were the selling agents. Finn & Co and Savills acted for the Purchaser.