Investment Acquisition of Kings House, Harrow
Advised Harrow Council on the purchase of the freehold interest of this office investment from Oval Real Estate for £22,910,000 reflecting £279 per sq ft, 5.5% NIY and 9.2% NRY.
• Kings House comprises 82,013 sq ft of Grade B office accommodation over 8 storeys, with an excellent town centre parking ratio of 1:854 sq ft.
• Strategically located in the town centre opposite Harrow on the Hill railway and underground station.
• The property benefits from secure income with a strong tenant line up in the form of the Secretary of State, Ipsos Mori and Health Intelligence with a WAULT of 7 years.
• 9% vacancy.
• Income of £1,364,000 pa, reflecting £18.30 psf overall.
• Reversionary to £2,250,000, reflecting £27.50 psf overall.
• Significant discount to prime rents at £35.00 psf, with further rental growth anticipated given high levels of tenant demand against Harrow’s very low office supply.
• Underpinned by residential use, with the neighbouring Queens House having recently sold to a well-known residential developer for £260psf with VP.