A “eco-friendly” City office block undergoing a huge refurbishment has been sold for £333 million in one of the biggest deals seen in central London in recent years.
The 195,000 sq ft building at 100 New Bridge Street will be occupied by the purchaser, as yet unnamed, but thought to be a major US bank.
It is still being developed by joint owners, property company Helical and London based investors Orion Capital Managers.
The sale is expected to complete in April next year when the building will be ready for occupation.
CoStar News revealed in January that US bank State Street was the party in talks to buy the building in one of the largest London office transactions in recent years.
State Street is currently based at 20 Churchill Place in Canary Wharf.
The forward sale is equivalent to £1,712 per sq ft, which represents a capitalisation yield of 5%, before deducting corporate sales costs and a notional rent free allowance.
The 10 storey building is undergoing a comprehensive refurbishment, stripping it back to its frame, recladding and adding two additional floors.
The completed development will include an eighth floor terrace of 7,450 sq ft,designed by renowned landscaper Tom Stuart-Smith with views of St. Paul’s Cathedral and across Central London.
Other facilities include 347 cycle spaces and changing rooms.
Helical’s CEO Matthew Bonning-Snook, said: “This transaction is a true reflection of the quality of 100 New Bridge Street as a London headquarters destination.
The very strong interest we received in the scheme over a year ahead of completion is testament not only to its best-in-class characteristics, but also the acute shortage of prime office space within the submarkets Helical has targeted as part of its significant development programme.”
Aref Lahham, founding partner and managing director of Orion Capital Managers said: “The sale of 100 New Bridge Street, following the leasing success of Panorama St Paul’s, represents a further vindication of Orion’s strategy to gain exposure to leasing risk in new best-in-class offices in the most in-demand locations across gateway cities in Europe.
“This transaction successfully capitalised on the intensifying occupier demand for the revitalised heart of the City of London amidst increasing supply constraints."
Helical and Orion Capital Managers were advised by Knight Frank and Ingleby Trice
The existing 167,026-square-foot building is a virtual freehold, held on a 999-year long lease at a peppercorn rent from Network Rail Infrastructure.
State Street declined to comment but in a previous statement it said: “Our current lease in Canary Wharf continues through 2028. As we do with our entire real estate portfolio, we will continue to evaluate our needs globally.”
