London-based property developer Helical plc has sold Power Road Studios, a multi-let office campus in Chiswick, London W4, to a private UK Investment Manager, for £41.58 million.
The sale price marginally exceeds the 31 March 2019 valuation and reflects a net initial yield of 4.8%, said the company in a statement.
Originally built in the 1930s as a Singer sewing machine factory, Power Road Studios provides 57,164 sq ft of innovative workspace set over four distinctive studio buildings. It is currently 84% let to a diverse range of occupiers, generating a contracted rent of £2.15 million per annum.
The site was acquired by Helical in 2015, who have since undertaken a rolling refurbishment of the property that includes the development of a new main entrance as well as improvements to the communal areas.
Planning permission has been granted for the construction of a new 30,000 sq ft building: a 13,000 sq ft roof extension to Studio 1; and an occupiers’ amenity block to provide additional bicycle storage and changing facilities.
”This disposal is in line with our clear strategy of selling non-core assets and realising proceeds which we can recycle into new value add and development opportunities in our core central London markets,” said Tom Anderson, Senior Investment Executive at Helical.
Helical was advised by TT&G Partners and the buyer by Michael Elliott.