Orchard Street Investment Management has acquired Dunn’s Hat Factory, a prime office asset in Camden, North London, for £25.3 mln (€28 mln) from Threadneedle on behalf of St James’s Place Property Unit Trust.
The purchase price for the off-market transaction represents a net initial yield of 4.3%.
The warehouse-style asset was transformed in 2004 from a former 1920s hat factory into 35,352 ft2 (3284 m2) office accommodation, retaining many original art-deco features.
'Dunn’s Hat Factory is a distinctive addition to our portfolio, offering prime warehouse style office space which appeals to the creative industries that are drawn to the area and who we will be targeting,' commented Barney Rowe, partner at Orchard Street. 'It is well positioned for further growth thanks to the gentrification underway locally, while rental levels remain highly competitive in comparison to similarly well connected London alternatives.'
While the first six floors provide office accommodation, two further storeys of residential on the seventh and eighth levels with independent access were sold off on a long lease. The multi-let property has been acquired with 13% vacancy.
Edward Charles & Partners has been retained by Orchard Street as letting agent for the two remaining suites totaling 4,600 ft2 (427 m2) at the property.