JLL mandated to sell 5 Fleet Place, London, EC4
Chinese real estate investor, Poly Developments and Holdings Co., has instructed JLL to sell its freehold office interest at 5 Fleet Place, EC4.
JLL is seeking a price of £182.5m, reflecting a net initial yield of 4.17% and a capital value of £1,399 per sq ft for the Jersey Co.
The landmark 130,000 sq ft Grade A office building is located within the City of London and is part of the internationally recognised Fleet Place Estate. The location is set to be enhanced further with the delivery of Crossrail at Farringdon station.
5 Fleet Place is home to the headquarters of law firm, Charles Russell Speechlys LLP, who have been in occupation since 2008 and have a lease until December 2031, without break. The property produces a topped up annual passing rent of circa £7.75m, reflecting circa £59.50 per sq ft with an overall unexpired lease term of 9.95 years.
There are currently two vacant office floors which are subject to a rental top up and are part of Poly’s significant refurbishment programme including a remodelled reception and enhanced occupier amenities.
Rob Jackson, head of City investment at JLL, said: “5 Fleet Place provides an opportunity to acquire a high quality freehold office asset on the borders of three of London’s most dynamic submarkets. With 11.75 years of secure income across 80% of the building to leading law firm, Charles Russell Speechlys, 5 Fleet Place generates strong cash on cash returns and the newly refurbished floors provide excellent growth potential in a rising rental market.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.co.uk.