AEW asking £140m for New Oxford Street asset

AEW REIT has put its mixed-use office building at 100 New Oxford Street, WC1, up for sale, inviting offers in excess of £140m. A sale at the price would reflect a net initial yield of roughly 5.5%, assuming purchaser’s costs of 1.8%, and a capital value of £1,275 per sq ft. The 106,000 sq ft property is comprised of 83,700 sq ft of office space and 23,500 sq ft of retail, restaurant and leisure units. It currently produces an income of £7,884,136 per annum, with office rents at £77.50 per sq ft – more than a 40% discount to prime West End office rents, which sit at around £130 per sq ft. The asset is being marketed as a repositioning opportunity to create best-in-class office space, with the potential to provide roof terracing and access to high-quality amenities in the area. Office tenants include developer Stanhope, game developer Space Ape and architecture and engineering practice Red Engineering, all of which are due to vacate the building between 2025 and 2028. WAULT on the property across all leases is five years and four years to earliest determinations. Cushman & Wakefield and TT&G Partners are jointly advising AEW on the sale. Image © Tayler Reid View availabilities on New Oxford Street >>