London property developer Helical has sold Power Road Studios, a multi-let office campus in Chiswick, London, to a private UK Investment Manager, for £41.58 mln (€49 mln). The sale price marginally exceeds the 31 March 2019 valuation and reflects a net initial yield of 4.8%.
Originally built in the 1930s as a Singer sewing machine factory, Power Road Studios provides 57,164 sq ft (5,300 m2) of innovative workspace set over four distinctive studio buildings. It is currently 84% let to a diverse range of occupiers, generating a contracted rent of £2.15 mln per annum.
The site was acquired by Helical in 2015, who have since undertaken a rolling refurbishment of the property that includes the development of a new main entrance as well as improvements to the communal areas.
Planning permission has been granted for the construction of a new 30,000 sq ft building: a 13,000 sq ft roof extension to Studio 1; and an occupiers’ amenity block to provide additional bicycle storage and changing facilities.
Tom Anderson, senior investment executive at Helical, commented: 'This disposal is in line with our clear strategy of selling non-core assets and realising proceeds which we can recycle into new value add and development opportunities in our core central London markets.'
Helical was advised by TT&G Partners and the buyer by Michael Elliott.