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News Release

London

JLL instructed to sell freehold interest in 77 Fulham Palace Road

Site is currently UK headquarters of Harper Collins


LONDON, 19 May 2014 - JLL has been instructed by Nordea Property Investment (UK) to sell the freehold interest in 77 Fulham Palace Road, London W6.

The sale comprises a rare, three acre office estate in a prime Hammersmith which has never been traded since its original construction in the early 1990s, and includes four office buildings, extending to approximately 195,000 sq ft, and over 220 car parking spaces. 

The estate is currently the UK headquarters of Harper Collins, which leases approximately 120,000 sq ft, and is anticipated to vacate at the expiration of its leases in 2015 and 2016, offering up significant refurbishment opportunities. The subletting of some of the Harper Collins space, along with a number of other upcoming lease expiries across the estate, presents a significant opportunity to reposition the buildings and benefit from the strong forecasted rental growth for the Hammersmith area.

Julian Sandbach, Head of West End Capital Markets at JLL said: “This is one of the most interesting assets to come to the market for some time. Not often do investors and developers have the opportunity to acquire three acres of freehold land so close to the core of Hammermith.

“The estate offers an exciting range of asset management strategies in a range of buildings and surroundings which have been exceptionally well maintained and run by the current owners. We expect interest from a broad range of investors and end users, across use spectrums, seeking to invest into tightly supplied market which is widely anticipated to experience strong rental performance over the coming years.”

The property lends itself to a number of asset management initiatives, which along with significant refurbishment of the current buildings on site, include the potential to regear/renew leases, or consider alternative uses including residential, subject to the appropriate consents.

JLL is instructed to seek offers in excess of £69,500,000, subject to contract, which reflects a net initial yield of 7.45% off the currently contracted income, and a low capital value of £360 per sq.ft. ​