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JPMorgan Eyes £135 Million West End Offices Sale

JLL has been mandated on Pall Mall disposal
45 Pall Mall's roof terrace. (CoStar)
45 Pall Mall's roof terrace. (CoStar)
CoStar News
May 28, 2024 | 2:12 P.M.

JMorgan Asset Management is looking to sell Times Place, 45 Pall Mall, a 59,712-square-foot trophy office in London's St James's seeking upwards £135 million.

JLL has been mandated on the sale, with the price reflecting a 4.34% net initial yield and a capital value of £2,261 per square feet.

JP Morgan Asset Management bought the freehold interest from M1 Real Estate in 2021 for £110 million, reflecting an initial yield of 4.55%, and has carried out a £10 million refurbishment programme.

The building is multilet to eight tenants. A recent letting on the third floor at £127.50 per square feet has pointed to the reversionary nature of the offices given the average passing rent on the unrefurbished floors is at £95.36 per square feet. Eight out of nine floors are to be refurbished.

Tenants include James Hambro & Partners and Centiva.

According to Savills' latest West End Investment Market Watch, by the end of April there was £2.57 billion of available stock across 92 assets, of which 60 fall below £20 million. There are very few assets over £100 million, with the only other recent example being Derwent London marketing its freehold interest in 90 Whitfield Street, W1, an 108,000-square-foot office-led building, seeking in excess of £130 million, as revealed by CoStar News.

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