A private overseas investor has put the freehold of 63 St James’s Street in London’s West End on the market for £61m+.
The building provides 22,151 sq ft of Grade A office accommodation arranged over lower ground, ground and six upper floors, in addition to an extensive terrace. It was refurbished in 2021 and is now fully electric.
The property is fully let to five investment grade-level tenants at a rent of £118/sq ft. In addition, 68% of the income is subject to lease events over the next 18 months.
The guide price represents a net initial yield of 4.06% and a capital value of £2,753/sq ft, which benchmarks favourably compared with surrounding core evidence of close to £4,000/sq ft.
James Purdon, director in the Central London Investment team at Savills, which has been appointed to market the opportunity, said: “In addition to being one of only three freehold office buildings on St James’s Street, it is extremely rare to find a recently refurbished, de-risked asset of this quality that carries quite such exceptional – and imminent – reversion. We are anticipating an accordingly strong response from both international and domestic investors seeking wealth preservation, enduring liquidity and substantial near-term rental growth.”
