Baylight Properties have formed a Joint Venture with an investment client of Arlington Property Investors (API), (part of Arlington Securities, the property services and fund management company) who have purchased 20 Golden Square & 5-8 Lower John Street, London W1 by way of a sale and part leaseback to Bernard Quaritch.
The building provides approximately 25,000 sq ft of net lettable office accommodation and is let to a number of tenants with a current rental income of approximately £440,000 increasing to £525,000 on settlement of outstanding rent reviews.
A price in the region of £7,600,000 was paid to reflect a net initial yield in the region of 6.5% a cost equivalent to £325 per sq ft.
This is Baylight’s second acquisition in Golden Square following on from the purchase of the former Granada Headquarters at 36 Golden Square which was extensively refurbished and pre-let to M&C Saatchi who then purchased the freehold interest earlier this year at a price of £24.5m.
Andrew Hogge of Cyril Leonard who advised Baylight/Arlington commented “this was an excellent opportunity to purchase one of the few remaining privately owned buildings in Golden Square. Crispin Kelly of Baylight will combine well with Arlington to unlock the development potential of this property in the medium term”.
