House of Commons-let building prepped for £90m sale
German property investor Real IS is preparing to launch the sale of a House of Commons-let office building in Westminster with an asking price of around £90m, reflecting a yield of circa 3.75%.
Cushman & Wakefield is understood to have been appointed to find a buyer for Telford House at 14 Tothill Street, SW1.
Real IS bought the 56,000 sq ft building in 2007 from Gracemark Investments and GE Real Estate for £57.8m.
German property investor Real IS is preparing to launch the sale of a House of Commons-let office building in Westminster with an asking price of around £90m, reflecting a yield of circa 3.75%.
[caption id="attachment_789102" align="alignright" width="150"] 14 Tothill Street[/caption]
Cushman & Wakefield is understood to have been appointed to find a buyer for Telford House at 14 Tothill Street, SW1.
Real IS bought the 56,000 sq ft building in 2007 from Gracemark Investments and GE Real Estate for £57.8m.
Located next door to the Department for Work and Pensions at Caxton House, Telford House has been let since 2007 to the House of Commons, which it is understood does not have an automatic right of renewal on the lease, expiring in 2023.
The government was due this spring to publish a revised strategy for its property estate, which will be implemented by the Government Property Unit and the recently announced Government Property Agency.
Since 2014, it has been rationalising its real estate requirements and last month reported 1.1m sq ft of land had been disposed of in the year to April 2017.
The report added that the government’s space per employee had been reduced by a further 5% to 9.9 sq m per employee, compared with an average of 11.2 sq m per employee in the private sector.
All parties declined to comment.
To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
A version of this article appeared in the 2 June edition of EG with the headline “£90m Westminster sale plan”
