Helical plc has exchanged contracts on the sale of C-Space, the award-winning office scheme at 37-45 City Road, Shoreditch, London, EC1 to Meadow London Core-Plus Fund LP, for £74m reflecting a net initial yield of 4.6%.
A former carpet factory, Helical acquired the building in June 2013, obtaining planning consent for its complete refurbishment to increase the floor space from 50,000 sq ft to 63,500 sq ft. The works, which were completed in October 2015, involved an additional floor and extensions to the third floor, a landscaped courtyard and entrance pavilion to the rear and full height glazing to the raised ground floor, adding considerable value to the scheme.
The building has proved to be highly attractive to the creative industries, with 75% of the space let to creative agency, MullenLowe and 25% to NeuLion, a technology product and service provider. The combined leases have a WAULT in excess of 12 years to lease expiry.
Matthew Bonning-Snook, Helical's Property Director, said: "The acquisition, refurbishment and now disposal of C-Space is a great case study illustrating what Helical does best, applying imagination to ordinary buildings to create beautiful, contemporary workspace whilst generating significant shareholder value. Proceeds from the disposal will go towards reducing gearing levels."
Mike Tremayne, a Principal at Meadow Partners, added: ''We are delighted to have acquired this award-winning and iconic office building, providing the Fund exposure to London's highly dynamic 'tech-belt' and creative submarket. The yield arbitrage to the City prime will ensure long-term performance and complement our growing investment platform. This transaction, which is now the eighth acquisition for the Fund since its inception in 2014, exchanged in an exceptionally tight timeframe, and fully endorses our exemplary track record for highly swift and efficient deal execution.''
Hall Kemp and Savills acted for Helical plc and Cushman & Wakefield acted for Meadow Partners.