40-44 Clipstone Street, London, W1W 5DW, UK

Threeways House

Asset description

Freehold
38,527 sq ft (3,579 sq m) of office and retail accommodation
Prominent Fitzrovia location, moments from Great Portland Street
Excellent transport links with five London underground stations and the Elizabeth line within an easy walk
Significant peninsula site, benefitting from 73 metres of triple aspect frontage onto Clipstone Street, Bolsover Street and Great Titchfield Street
Highly reversionary passing rent of £60.69 per sq ft, with best-in-class nearby buildings achieving in excess of £135.00 per sq ft
Opportunity to create a block date in Q4 2027, on all but the 1^st floor and centre retail unit, enabling a comprehensive refurbishment including one additional storey of office accommodation, new communal roof terrace, reconfigured entrance, and additional end of journey amenity
Opportunity to drive day one rents from £1.49m per annum to over £3.20m, capturing Fitzrovia’s 14% projected rental growth over the next 5 years

...

Attributes

Tenure

Freehold

Building area net

3,579 sm

Asking price

₱2,614,546,000

Media

Investment highlights

This exceptional property, combined with its significant asset management potential and highly reversionary income, provides immediate opportunities for significant value appreciation.

Indicative business plan:

Reconfiguration of the reception to create an improved arrival experience
Creation of new end of journey amenity
A comprehensive CAT A refurbishment on floors 2–5 inclusive
Creation of a new cafe on the corner of Great Titchfield Street and Clipstone Street
Additional massing through the creation of a new sixth floor
Construction of a communal terrace
Opportunity to explore permitted development rights
Utilise Section 30 rights to gain vacant possession of the west retail unit

Indicative returns:

Potential to drive day one rents from £1.49m per annum to in excess of £3.20m per annum, reflecting a yield on cost of 5.70%
Indicative financial returns, assuming a base case business plan, excluding any additional massing, produce an unlevered IRR of 12.80%, levered IRR of 16.00%, and a levered equity multiple of 1.63x0%, levered IRR of 16.00%, and a levered equity multiple of 1.63x