Aviva is looking to capitalise on office investment momentum in the West End by putting a core multi-let office up for sale for £160m – a net initial yield of 4.1%.
The 46,765 sq ft 11-12 Hanover Square, W1, is an eight-storey, Campbell Architects-designed building with grade-A office space above Oxford Street-facing retail space. It has terraces on the fifth, sixth and seventh floors.
The offices are let to Summit Partners, EK Capital and Promeritum Investment Management, with rents averaging £126.30 per sq ft.
The retail unit, which is leased to New Balance Athletic Shoes until mid-2031 at an annual rent of £2.47m per annum, is currently undergoing a £2m refit and is due to reopen in Q2.
The property generates total annual income of around £6.7m, which equates to just under £143 per sq ft.
With the office leases set to expire by July 2028, the asset is being marketed as an opportunity to cash in on rising rents in Mayfair, with guiding rents nearby between £185 and £220 per sq ft and forecast to grow by a quarter over the next five years.
The building is 100% electric, with EPC A and BREEAM Excellent ratings, offering a sustainable investment with little capital expenditure needed to recoup investment.
Knight Frank and Newmark have been appointed to market the property.
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