Description
Dalston Works presents an opportunity to acquire a substantial, multi-let commercial investment in the heart of Dalston, East London.
The investment comprises approximately 31,626 sq ft (NIA) of commercial accommodation beneath the Waugh Thistleton-designed Dalston Works development, providing a diverse mix of office, retail, leisure and creative workspace accommodation.
The property is let to seven businesses, including PureGym and internationally recognised fashion brand Simone Rocha, which together account for approximately 50.7% of the contracted rental income.
The investment currently generates £585,674 per annum in contracted rental income. A proposed 12-month vendor rental top-up on the vacant office accommodation increases the income to £772,299 per annum, reflecting a blended rent of approximately £24.42 per sq ft.
A significant asset management opportunity exists within Block G, where approximately 7,465 sq ft of office accommodation is available to let, with an estimated rental value of £27.50 per sq ft.
The property benefits from strong sustainability credentials, including BREEAM Excellent accreditation and EPC ratings of A24 or better.
Offers are invited in excess of £9,750,000, reflecting a topped-up net initial yield of 7.42% and a reversionary yield of 8.20%, subject to the stated rental assumptions and purchaser's costs.
Location
Dalston Works is prominently situated on Dalston Lane in the heart of Dalston, one of East London's most established and vibrant mixed-use neighbourhoods.
The surrounding area is characterised by a diverse mix of independent retailers, restaurants, cafés, creative businesses and established leisure operators, creating a thriving commercial and residential environment.
The property benefits from excellent public transport connections, with Dalston Junction and Dalston Kingsland Overground stations within walking distance, providing convenient access to Shoreditch, Highbury & Islington, Stratford and the wider London transport network.
The location also benefits from proximity to London Fields, Hackney Central and the established commercial districts of Shoreditch and the City of London.
Terms
Tenure
The property is offered by way of a proposed new 999-year long leasehold interest in the commercial accommodation.
Price
Offers are invited in excess of £9,750,000, subject to contract and exclusive of VAT.
Investment Income
Current contracted rental income totals £585,674 per annum, increasing to £772,299 per annum inclusive of a proposed 12-month vendor rental top-up on the vacant offices.
The asking price reflects a topped-up net initial yield of 7.42%. The quoted reversionary yield of 8.20% assumes the full estimated rental value across the investment, including £27.50 per sq ft on the vacant offices, and allows for purchaser's costs.
Further Information
Full legal, tenancy and technical information is available within the dedicated investment data room, subject to approval.
Joint Agents
Strettons – Jon Cuthbert and Tom Schwier
BELCOR Capital Markets – Nick Kelliher and Oliver Cohen
