RDI sells 127 Charing Cross Road for £59m
RDI has completed the £59.25m sale of 127 Charing Cross Road, WC2, to Japanese investor Nomura Real Estate, with planning permission in place to add three extra floors to the building.
Nomura will have the option to increase the size of the property by around 41%, as the area prepares to benefit from the opening of the Tottenham Court Road Crossrail station.
The disposal price reflects a net initial yield of 3.1%, based on the contracted rental income, and a capital value per of £1,481 per sq ft on the existing area.
RDI has completed the £59.25m sale of 127 Charing Cross Road, WC2, to Japanese investor Nomura Real Estate, with planning permission in place to add three extra floors to the building.
Nomura will have the option to increase the size of the property by around 41%, as the area prepares to benefit from the opening of the Tottenham Court Road Crossrail station.
The disposal price reflects a net initial yield of 3.1%, based on the contracted rental income, and a capital value per of £1,481 per sq ft on the existing area.
EG understands the property went under offer in November last year, with Lothbury Investment Management handling the deal from Nomura’s side.
Stephen Oakenfull, chief executive of RDI, said: “This disposal marks the conclusion of a well-executed and successful asset management plan designed to enhance the value of an income-generating asset.
“We believe that the sale captures a significant proportion of the asset’s potential value and provides us with the ability to recycle capital into opportunities with stronger risk-adjusted returns.
“In the meantime, the proceeds of this transaction further strengthen the balance sheet where we now have cash and available facilities totalling approximately £275m to execute on our strategy.”
Hanover Green and Knight Frank advised RDI while BNP Paribas Real Estate acted for Lothbury.
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