RX London launches the sale of 2 London Bridge, SE1
May 2022 | News
2 London Bridge provides the opportunity to acquire a prime South Bank investment with the ability to capture significant reversion upon lease expiries.
A freehold island site comprising 0.45 acres (0.18 hectares), situated immediately opposite London Bridge station, one of London’s busiest stations. The highly prominent office building boasts panoramic views of the River Thames and benefits from a 40 metre frontage to London Bridge, a key arterial route connecting South Bank to the core of the City of London.
Comprising 50,527 sq ft (4,694.1 sq m) of office and retail accommodation arranged over ground and five upper floors, the building is split into two distinctive east and west sections on either side of a central core. The property is multi let to six office tenants and one retail tenant, providing a WAULT of 5.6 years to expiries and 3.8 years to breaks. The building produces a highly reversionary topped-up passing rent of £3,145,285 per annum, reflecting £62.25 per sq ft overall, with all office leases outside the 1954 Act.
2 London Bridge provides immediate asset management opportunities to undertake new lettings, with rents in the immediate proximity reaching up to £90.00 per sq ft for similar sized floor plates. There is the potential to add a dramatic roof terrace and additional floors, subject to the necessary consents. In addition, there is also the potential to purchase Glaziers’ Hall by way of separate negotiation.
Offers are invited in excess of £58,900,000, reflecting a net initial yield of 5.00% and a reversionary yield of 6.00% (assuming purchaser’s costs of 6.80%). This reflects a capital value of £1,165 per sq ft.