CB Richard Ellis Investors has instructed DTZ to market the sale of its City of London ‘Houndsditch’ office portfolio for £33.5m at a yield of 11.6%.

The portfolio includes three adjoining buildings - Cutlers Exchange, 117-119 Houndsditch and Cutlers Court – which total 123,616 sq ft.

The buildings are held on a long leasehold from The Worshipful Company of Cutlers at a yearly ground rent of around £617,561. The total passing rent, including a vendor rent guarantee on vacant space, is £4.7m a year or £38.18/sq ft overall.

Following deduction of the ground rent the net income will be £4.1m a year.

CBRE Investors there is significant redevelopment potential across the adjoining site to create a building of around 300,000 sq ft, subject to planning consent and the agreement with the The Worshipful Company of Cutlers.

DTZ has been instructed to seek offers for the individual properties

or for the entire portfolio subject to contract and exclusive of VAT.