Leading property consultancy Allsop has sold a multi-let industrial and office estate in Fulham, west London for £19.1 million on behalf of the Structadene Group.
Imperial Studios, in the London Borough of Hammersmith & Fulham, is a two-storey building spanning 30,645 sq ft, made up of industrial and office space. Currently arranged as 16 separate units, the property is let to 13 tenants with occupiers ranging from antique dealers to coffee workshops and workspace users, passing off an average rent of just under £17.00 per sq ft, with potential for significant reversion.
The site benefits from significant future development opportunities, with planning permission having already been granted for a commercial-led redevelopment that would increase the GIA by 73% to 53,969 sq ft. The mixed-use asset was acquired by AG Bloom LML BV, a joint venture between Angelo Gordon and Bloom Developments for £19.1 million, reflecting a net initial yield of 2.5% and a capital value of £623 per sq ft, and equating to more than £44 million per acre – a new record for the UK warehousing sector.
James Salmon, Associate Partner at Allsop, said: “Imperial Studios benefits from an attractive existing tenant lineup, an enviable location in an affluent and well-connected area, and compelling redevelopment possibilities. This combined with the strength and resilience of this market – central London industrial and neighbourhood London office – makes it an exceptional investment opportunity. Moreover, demand for warehousing assets has reached new heights across the country over the past few years, with quality London-based industrial schemes becoming increasingly hard to come by, which is reflected in a competitive off-market process and a record-setting sales price.
“This transaction is a brilliant way to start off the year for Allsop, with activity levels within the logistics and warehousing plus Central London offices sectors showing no signs of slowing down, as investors continue to be on the lookout for value-add opportunities.”
Andrew Inglis, Fund Manager at Structadene Group, said: “Imperial Studios has been a very strong asset in our portfolio for around 15 years, offering stable rental returns with future reversion and redevelopment opportunities. Having obtained planning permission, we were delighted to have capitalised on the market demand and sold this prime scheme off-market via Allsop, whose knowledge, expertise and understanding of the commercial real estate market complemented ours. We look forward to working on further value-creating opportunities in the future.”
Montagu Evans acted for AG Bloom, the purchasers.