Terrace Hill has sold the freehold interest in its Kean House development in Covent Garden, London to a major UK institution for a total consideration of £16 million, representing a net initial yield of 6.4%.
Situated on the eastern boundary of Covent Garden and close to Holborn tube station, 6 Kean Street comprises a 26,000 sq ft prime Grade A comprehensive office refurbishment arranged over a basement and nine upper-storeys, together with two retail units fronting Kingsway. Completed by Terrace Hill in November 2007, the property is multi-let to a number of strong tenants, including Barrow Cadbury Trust and Virgin Green Fund (VGF Advisors UK LLP). The retail units are occupied by Costa Coffee and Adecco.
The sale follows the recent re-letting of the entire fifth floor of the building, comprising 2,993 sq ft (NIA), to ChannelAdvisor, having simultaneously negotiated the surrender of the lease held by the previous tenant, Asset Services London Ltd. ChannelAdvisor relocated from UK headquarters in Richmond, taking the space on a five-year lease at a rent of £127,200 per annum, equating to £42.50 per sq ft. Currently just one floor remains vacant at the building, totalling 2,953 sq ft on the third floor.