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Madison International Realty puts final Houndsditch holding up for sale

Madison International Realty and Nuveen have put 133 Houndsditch, EC3, up sale for around £170m, reflecting a circa 5% yield.

The freehold building is leased to several tenants, including WeWork, which last month agreed to take just under 46,000 sq ft at the property for its new product, Headquarters by WeWork, which offers occupiers personalised workspaces.

Contracts were also recently exchanged with multimedia products and solutions provider Infopro Digital for around 16,400 sq ft on the fifth floor of the 224,000 sq ft office space.

The average WAULT of the property is more than eight years to expiry. It produces £8.65m per annum of income and has a capital value of £840 per sq ft.

In addition, it is understood that the property will produce 8.5% cash on cash from day one.

CBRE has been instructed to find a buyer. It was first appointed two years ago to sell the property, along with its then other Houndsditch estate holdings, for around £240m.

The other Houndsditch estate assets – 123, 115, 117-119 and 120 Houndsditch – were sold to Brockton Everlast earlier this year.

All parties declined to comment.

To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette

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