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Covent Garden’s Drury House on the block

By James Buckley - Tuesday, May 08, 2018 13:16

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DTZ Investors has put up for sale Drury House in Covent Garden, WC2, for £42.25m.

Allsop has been instructed to sell the freehold interest in the property at 34-43 Russell Street for a net initial yield of 4.52% and a capital value of £1,163 per sq ft.

The mixed-use building comprises 36,322 sq ft of office and retail space arranged over lower ground, ground and five upper floors.

The asset is multi-let to three tenants – Wardour Communications, Beamly and restaurant by CHLOE.

All four leases are outside the 1954 Landlord & Tenant Act and the WAULT is 6.8 years to lease expiry on the let space.

The total rental income is £2,040,460 per annum (including vendor rental top-ups) and the passing office rent is circa £60 per sq ft (including vendor rental top-ups), equating to circa 70% of Grade A Covent Garden rental levels that stand at £85 per sq ft.

Offers are invited in excess of £42,250,000 subject to contract and exclusive of VAT. Pricing at this level reflects a net initial yield of 4.52% (assuming full purchaser’s costs of 6.78%) and a capital value of £1,163 per sq ft.

jbuckley@costar.co.uk

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