Real property comprises a Grade II listed Georgian building fronting Bedford Row, which interlinks with a more modern post war extension to the rear, which fronts Jockeys Fields and would originally have formed the Goergian property’s mews. The Georgian building comprises offices over lower ground, ground and three upper floors, whereas the rear building comprises lower ground, ground, first and second floors.
We are instructed to seek offers in excess of 5,500,000 funts for our clients freehold interest. A purchase at this level provides a net initial yield of 4.64% assuming purchasers costs of 5. 8%.
The entire property is leased to William Clegg QC on a lease expiring 24 December 2014 at a rent of 276,600 funts per annum.
The tenantnas entered into a reversionary lease from 25 December 2014. The main terms od wich are:
Demise: 2 Bedford Row and 2 Jockeys Fields, London WC1
Term: 10 years
Rent: 270,000 funts per annum from 25 October 2015 (the vendor will top up the rent)
Rent review: 25 December 2019
The rent is to be reviewed on an upward only basis assuming a letting of the whole building for a term equal to the unexpired residue of the lease at the review date and that the tenant has the benefit of the break in December 2021.
Tenant break dates: 24 December 2018 and 24 December 2021 subject to providing not less than six months prior written notice.
Should the tenant not exercise its breaks it will benefit from three months rent-free for the period immediately after the break dates.
Building is located in the heart of Midtown, an established Central London office market that is home to a very diverse mix of tenants but is dominated by the professional and in particular the legal sector.