Last week, Allsop recorded one of its fastest deals this year, with the sale of 640 – 656 High Road, an office investment in Tottenham, selling within just four days. The asset, owned by Courtenay Investments, sold for £7m, achieving a net initial yield (NIY) of 4.75% which showed a capital value of approximately £350psf. The asset, which sold for well in excess of its asking price, was purchased by a UK investor.
640 – 656 High Road Tottenham comprises 19,992 sq ft of office accommodation across three storeys. Built in 1973, the building is currently a Job Centre and is entirely let to The Secretary of State for Housing, Communities and Local Government with eight years unexpired on the lease at a current rent of £354,858 pa.
The investment was marketed seeking offers in excess of £6.5m with a NIY of 5.1% and would have been sold at Allsop’s forthcoming May commercial auction, had a sale not taken place prior. The sale was transacted through Allsop’s Hybrid method – a partnership between its national investment and auction teams. This method offers vendors who are looking for the certainty of sale the opportunity to sell the property on an auction contract but with the benefit of a short private treaty marketing campaign, followed by the efficiency, certainty and speed that an auction contract offers.
The property received over 100 phone enquiries and in excess of 30,000 downloads of the sales details in the first three days of marketing. The sale attracted strong interest from foreign territories including Hong Kong, Singapore, Israel and Germany.
Alex Butler, Partner, National Investment at Allsop, said: “Despite the current challenging market conditions, we received an overwhelming response for this asset. Not only did the property go under offer and exchange in just four days, it sold significantly above the asking price. The sale demonstrates there is still appetite in the market for strong performing assets with secure income and how Allsop’s Hybrid approach can provide a certainty of sale for our clients.”
Richard Osband, Director at Courtenay Investments, said: “The sale achieved an excellent price and in just days of the property going to market. We are now looking to the future, post lockdown, with the funds raised to be invested in a flexible workplace joint venture with x+why. The first flexible office, Huguenot Place, E1, strategically located near the City in the trendy area of Brick Lane and Spitalfields Market, has recently opened and already has a take up of 80% of membership.”
Allsop acted on behalf of the vendor and Landswood de Coy acted for the purchaser.
