A joint venture between London-based property group Helical and The Baupost Group, L.L.C. has sold 90 Bartholomew Close, an office property at Barts Square in the City of London, to La Francaise Real Estate Partners International (LF REPI), a pan-European investment business acting on behalf of a French collective real estate investment vehicle, for £48.5 million, reflecting a net initial yield of 3.92% (£1,594 per sq ft capital value).
The recently completed six-storey building provides 24,013 sq ft of office space, as well as a 6,414 sq ft restaurant which is occupied by the award-winning LINO, all housed behind an attractive retained Victorian façade. The five office tenants span a range of industries including law, software design and business consultancy. The total headline rent roll of £2,031,224 per annum reflects an average of £76.26 per sq ft on the office accommodation.
“Despite operating in a constrained environment, the timing of this sale reflects my firm belief that the attraction of good quality London real estate for international capital will continue. 90 Bartholomew Close is an integral part of the Barts Square estate as it forms a recognisable landmark ‘gateway’ to the newly created public realm and retail offering. We look forward to continuing working closely with LF REPI to ensure the estate goes from strength to strength,” said Gerald Kaye, CEO, Helical.
Peter Balfour, Investment Director, LF REPI commented: “90 Bartholomew Close marks the milestone of our first acquisition in the UK on behalf of La Francaise funds and signifies the intention to grow our assets under management in the UK real estate market. We are pleased to have purchased a key building in Helical’s Barts Square estate and anticipate good growth prospects associated with the completion of new developments nearby. 90 Bartholomew Close makes a good addition to our group’s portfolio of €23 billion in assets under management.”
The Helical/Baupost Joint Venture acquired the Barts site in 2011 and redeveloped the area in three phases. Barts Square is a three-acre, mixed use development located between St Paul’s and Smithfield. Comprising 236 high quality apartments, circa 250,000 sq ft of contemporary office space over three buildings and 10 retail and restaurant units, Barts Square is the creation of a genuine new urban quarter in this charming location. It is also a short walk from the new Farringdon East Elizabeth Line (Crossrail) station, due to open in 2021. Beautiful landscaping is complemented by a line-up of independent food and beverage operators.
Helical was advised by Ingleby Trice and Fineman Ross. JLL acted for La Francaise Real Estate Partners International.