Zenith offers historic Pall Mall property for £60m sale

Zenith Property Developments has placed 50 Pall Mall, SW1, on the market on behalf of a European investor. Cushman & Wakefield has been instructed by the investor platform to look for offers in excess of £59.2m for the freehold property, which was the original site of one of the world’s oldest gentlemen’s clubs. The sale price reflects a net initial yield of 4.25% and a low capital value of £1,678 per sq ft. Located in the heart of St James’s, opposite the prestigious Oxford and Cambridge Club, the property was comprehensively refurbished in 2006, with further refurbishment in 2016/17 to provide 35,257 sq ft of office space. Tenants at the property include investment manager Cohen & Steers, Edge Technology Group, aerospace and automotive supplier GKN, private equity fund manager Kerogen Capital, and investment firm Northgate Capital. The average WAULT is 6.75 years to expiry and 3.7 years to break and has a total passing rent of £2.7m per annum, reflecting a low average rent for the area of £80.53 per sq ft. Zenith acquired the building in 2013 from Legal and General Assurance Society for £62.5m, according to the Land Registry. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette