The Relay Building in the City of London has been put up for sale by receivers FRP Advisory for £45.3m.
The fixed charge receivers – Tony Wright and Alastair Massey of FRP Advisory – have appointed Savills to sell the majority freehold of the 22-storey development.
The 102,416 sq ft Relay Building, which was developed by Redrow in 2014, comprises Grade A office, education and retail accommodation arranged over lower ground, ground and six upper floors, as well as 207 residential apartments, which have already been sold off.
It is let to four office and educational tenants and three retail occupiers and generates a passing rent of £5,323,697.98 per annum. The guide price of £45.3m reflects a net initial yield of 11%.
The site benefits from a positive pre-application for a change of use to education across the office space and there is also an opportunity to seek prior approval for change of use to residential under permitted development rights.
Anthony Simmons, a director at FRP Advisory, said: “This is a unique opportunity to acquire a multi-faceted real estate asset in the sought after Aldgate area of London. With the development offering long term income opportunities, demand is expected to be high and interested buyers are encouraged to make contact with the Savills sale team promptly.”
Paul Bassi, a director in Savills’ City investment team, added: “We’re pleased to be offering the rare opportunity to purchase a 22-storey City tower. What makes the Relay Building appealing to a potential buyer is its strong fundamentals – it’s situated in the heart of Aldgate, meaning it not only has excellent connectivity, it also benefits from its proximity to the City, Spitalfields and the tech belt – appealing to a range of tenants. It already has strong rental income from a range of office and retail occupiers, and with the flexibility on planning, there is the possibility to adapt the building for alternate uses.”
