UK-focused property developer-investor Helical has exchanged contracts to sell the C-Space office scheme in Shoreditch, London, for £74 mln (€83 mln), reflecting a net initial yield of 4.6%.
The buyer is the Meadow London Core-Plus Fund, invested by sovereign wealth capital and managed by independent, privately owned real estate investment and asset management firm Meadow Partners.
A former carpet factory, Helical acquired the building in June 2013, obtaining planning consent for its complete refurbishment to increase the floor space from 50,000 sq ft (4,650 m2) to 63,500 sq ft.
The works, which were completed in October 2015, involved an additional floor and extensions to the third floor, a landscaped courtyard and entrance pavilion to the rear and full height glazing to the raised ground floor.
The building is 75% let to creative agency, MullenLowe and 25% to NeuLion, a technology product and service provider. The combined leases have a weighted average unexpired lease term in excess of 12 years to lease expiry.
Proceeds from the disposal will be used to reduce gearing levels.
Mike Tremayne, a Principal at Meadow Partners, commented: 'This transaction, which is now the eighth acquisition for the Fund since its inception in 2014, exchanged in an exceptionally tight timeframe.'
Hall Kemp and Savills acted for Helical and Cushman & Wakefield acted for Meadow Partners.