IV Real Estate Puts Farringdon Offices on Block

22 September, 2021

Freehold sale of fully let London office and ancillary accommodation over five floors

IV Real Estate is bringing to market 14 Clerkenwell Close, a refurbished office building in Farringdon in London, attaching a guide price of £9.1 million and a net initial yield of 4.90%.

Knight Frank and CBRE have been appointed on the fully let freehold sale.

The property has 8,695 square feet of office and ancillary accommodation over five floors and is fully let on five- to 10-year leases. It generates a rent of £480,000 a year, or £54.99 per square feet.

Advertising platform Adform leases 41% of the building’s letable area, with design consultancy Acumen and change consultancy Grayce taking another 31% and 28% respectively.

The asset has a weighted average unexpired lease term of 6.7 years.

The building is located close to the Elizabeth Line which will directly link Farringdon with the Home Counties, Canary Wharf and three of London’s five airports.

A full refurbishment was carried out in 2020 so the offices are reconfigurable and include a communal roof terrace, bike storage and shower and changing facilities.

Ollie Thornton, associate partner at Knight Frank, said the comprehensive refurbishment has repositioned the building for TMT occupiers in a "post-COVID landscape".

"Now fully let, the building offers secure income in one of London’s most attractive and dynamic sub-markets. In-built terraces and amenities promote the healthy, flexible and sustainable working habits which have become a priority for employers post-pandemic."

Knight Frank’s 2021 (Y)OUR SPACE report surveyed 400 global business leaders and found they are increasingly prioritising health and wellbeing as they emerge from the pandemic, and the office will be key to achieving those goals.

Asked: “What strategic agenda items does real estate support?”, 37% of the global occupiers surveyed said employee wellbeing, while the same percentage said increased collaboration,.