On behalf of a Private Equity client Red Kite has purchased 150 Holborn from a mainline Institutional Fund. The property provides retail income on the ground floor of £1m p.a. and 52,000 sq ft of vacant office space above. Red Kite was responsible for the introduction and sourcing of this property and has advised the Private Equity on the full aspects of asset management for the retail and vacant office leasing potential which include dilapidations, retail office and alternative use agency. The price paid of £23m represents a yield of 6% NI on the retail income and a low capital value per sq ft on the 6 floors of offices above.
There is further gain by extension and restructure of existing floor plates to provide a possible further 25,000 sq ft.
Red Kite also negotiated the dilapidations to be passed over and the property will be marketed for rental in the New Year in 2010.