Aviva Investors to sell two City buildings

The properties are 24 Chiswell Street and Earl Place at 15 Appold Street in City.

The two buildings were part of the Project Ed portfolio that was under offer to Chester Properties before the deal fell through earlier this month. The only other City building that was part of the Project Ed portfolio and is not being brought to the market is Fountain House on Fenchurch Strret.

24 Chiswell comprises 76,393 sq ft of office space and is being marketed at £30.75m at a net initial yield of 7.75% and after the allowance of purchaser’s costs of 5.725%. This equates to a capital value of £403/sq ft.

The property is held on a virtual freehold basis, via a long lease from The Honourable Artillery Company for a term expiring on 19 March 3912 at a fixed rent of £5 a year. The building is currently let to 10 tenants with an average weighted unexpired lease term of approximately 4.5 years. The total current rent passing, including the rental guarantees proposed by the vendor will be around £2.5m a year which equates to £32.99/sq ft overall.

Earl Place is held freehold and is fully let to four tenants with an average weighted unexpired lease term of around 6 years. The total rent passing equates to a rent of £40.62/sq ft overall. Aviva Investors is seeking offers of more than £46.75m reflecting a net initial yield of 7.74%.