JR Capital is pleased to announce that it has completed the purchase of an office block at 14 Shepherdess Walk, Shoreditch.

 

The property is located just off of Old Street roundabout and in the heart of London’s Tech City and provides close to 10 years of income secured to an IT company at a passing rent of £20 psf which is highly reversionary.

 

Office rents in Shoreditch are currently north of £50 psf with highs of £70 psf recently achieved at the White Collar Factory on City Road.

 

Nearby developments include Rocket Investment’s Atlas Building and Brookfield’s Principle Place where Amazon has agreed to take circa 500,000 sq ft.

 

The purchase price of £3m reflects a net initial yield of 3% and a capital value of £650 psf.

 

Allsops represented JR Capital and Sterling Ackroyd represented the vendor.

 

John Collier-Wright, founder and chief executive of JR Capital said: “We are pleased to have completed our second investment this month which follows a busy post-Brexit period. This investment fits well within our strategy of buying undervalued assets in fringe areas of Central London that are due to benefit from major infrastructure and regeneration over the medium term. Shoreditch is an area we believe in and where we expect to see further growth. TMT occupiers are driving demand at the moment and this property provides attractive warehouse style open plan offices that are well suited to the local occupier market.

 

We have seen unprecedented demand from Middle East investors for Central London assets since Brexit due to the weak sterling and we remain bullish on the outlook over the medium-term despite the political uncertainty. We expect to deploy a further £50m to £75m of equity in Central London over the course of this year in a mixture of stable income and value added opportunities.

 

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