Mitsubishi Estate London has launched the sale of its freehold interest in an office block at 70 Petty France, SW1, for a guide price of £70m, which reflects a capital value of £761 and a net initial yield of just under 7.1%.
The building covers 87,294 sq ft, alongside 4,716 sq ft of continuous perimeter trunking, which brings the total net internal space to 92,010 sq ft of office and ancillary accommodation across the eight-storey building.
The building has long been occupied by government bodies, having previously been the Passport Office and later occupied by the Ministry of Justice. The block is now single-let to the Secretary of State for Communities and Local Government, bringing in a rent of almost £5.3m per year or £60.43 per sq ft. However, the occupier has served notice that it will vacate the building in September 2025, ahead of its agreed lease expiry in September 2027.
As a result, the property is being marketed as an opportunity to invest in the property and refurbish it as an HQ office building, or to explore opportunities for change of use to residential or hotel uses.
Mitsubishi Estate acquired the building from German investor Real IS in 2013 for £90m, which reflected a 4.25% yield.
Avison Young has been appointed to lead the sale.
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