A prime West End Freehold office investment in the heart of Marylebone is being marketed for £26m (4.5% NIY) by Allsop on behalf of a company owned by Kajima Properties. The price reflects a low capital value at just over £1,000 per sq ft.

The property, known as “The Grove” on Marylebone Road, NW1, is fully let to a diverse range of office tenants and is an excellent example of a solid investment in a market where West End freehold opportunities are rare and multi-let opportunities of this lot size are highly liquid.

Kajima transformed the building in 2012 to a design by Stirling Prize winning architects AHMM, comprehensively refurbishing the building to create a contemporary and sustainable working environment, including a penthouse office suite, with fabulous views across London.

John Harcourt, Investment Director at Kajima, commented:

“We love what we have achieved at The Grove, and our tenants clearly agree.  Having re-geared some of the leases in the past few weeks, and in the process proven occupier demand, rental growth and the reversions available over the next couple of years, we feel now is an opportune moment to realise that value and to recycle the capital into other opportunities in London and further afield.”

The investment currently produces a rental income of £1,226.447 pa, equating to £49 psf overall – a substantial discount to the average West End Grade A rent, which currently stands at £77.50 psf.

The Grove is a significant and realisable asset management opportunity, with reviews of rental income via numerous lease events in 2018 and 2019.  The Marylebone location is also set to benefit from the positive impact of the arrival of Crossrail, which is a very short walk from the property.

The 24,990 sq ft (2,321 sq m) office accommodation is arranged over ground and six upper floors with terraces on the fifth and sixth floors and 12 car parking spaces.

For further information contact Ben Blinston-Jones, Partner West End Business Team at Allsop on 020 7543 6716 or ben.blinston-jones@allsop.co.uk