City sells Aldgate SME hub at 35% premium

The City of London Corporation has exchanged contracts to sell a SME hub in the up-and-coming Aldgate area for 35% more than its asking price. Newworth Holdings, a special-purpose vehicle backed by a New York-based private investor, has agreed to pay more than £52m for 1 Alie Street, E1. The 104,483 sq ft building is let to dozens of tenants at a low passing rent of £18.31 per sq ft overall. Cushman & Wakefield was seeking bids of £38m. It has around two years left on its leases and the new owner is expected to pursue a rolling refurbishment programme. The purchaser also owns the nearby 18 Mansell Street, E1, through a Gibraltar-based vehicle called Olsworth Holdings and is understood to have been encouraged by rents achieved in the building. It recently let the 7,300 sq ft third floor of 18 Mansell Street to media company Ziff Davis at a rent of £47.50 per sq ft. Newworth outbid developers including Derwent London, Dorrington and Workspace Group to secure the deal. Noble Harris advised the purchaser. jack.sidders@estatesgazette.com