West End Property Swap

15-17 Broadwick Street in Soho changed ownership from CBRE GI’s Pan Europe Core Fund to clients of the Deerbrook Group, and Charlotte House, 11-14 Windmill Street in Fitzrovia has changed ownership from Deerbrook to CBRE GI. 

15-17 Broadwick Street was sold by Epic UK Ltd for £31.7 million as an investment back in April 2010 to CBRE GI which reflected a net internal yield of 5.25%. The 32,431 sq. ft. building was let in its entirety to Ford Motor Company Ltd and produces a rental income per annum of £1.7 million. Fords lease is due to expire in 2020. 

Charlotte House was sold in September 2012 by SWIP Property Trust to the Deerbrook Group for £15 million, the 25,523 sq. ft. property was vacant at the time of sale. It has now been fully refurbished and is let to a design and animation company at a rent thought to be just under £60 psf.

Currently 15-17 Broadwick Street is worth an estimated £42 million and Charlotte House is thought to be just under £32 million – a cash sum around £10 million is thought to have changed hands to even the deal. In the current market property swaps are becoming more commonplace as investors are looking for a steady income and developers are looking for asset management opportunities; this is thought to be the reason behind Deerbrook and CBRE’s swap.  

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.