Estate Office Acquires Deutsche Bank City Office for £32m on Behalf of Hong Kong Family

Estate Office Property Consultants, one of London’s last remaining independent investment and development consultancies, has acquired Garden House, a prime 43,382 sq ft office in the heart of the City of London, EC2 on behalf of a Hong Kong-based private family office, with a long lease expiring in December 2123. It marks another trophy acquisition for the firm, which has an unrivalled track record in acting for overseas investors seeking profitable assets in London and across the UK, having advised on over £1bn of transactions in the past five years.

Garden House, close to the Bank of England, was purchased from a UK institutional fund for £32.4m, reflecting a 5% net initial yield and an attractive capital value of circa £746 per sq ft. Garden House currently delivers a gross annual rent of £1.78m and a low passing rent of £41 per sq ft, with an upward only rent review in March 2021. 

Situated just 150 metres north-east of the Bank of England and 300 metres south of Liverpool Street and Moorgate stations, which are set to benefit dramatically from the arrival of Crossrail, Garden House enjoys a highly convenient location in an area populated with high profile firms including Blackrock, China Construction Bank, ING, UBS, White & Case, Talbot Underwriting, BP and AXA. 

The office was developed by MEPC in 1986 and sits on the corner of Throgmorton Avenue and Austin Friars, currently housing Deutsche Bank (DB UK Bank Limited) on a single let until March 2023, as part of its nearby campus at Winchester House. The building provides high quality accommodation arranged over basement, lower ground, ground and six upper floors. The office floors are arranged around a central atrium ensuring high levels of natural light, with potential to increase the building’s net internal area, improving the rental level upon vacant possession through refurbishment and extension.

Barry Marshall, Head of Commercial at Estate Office, comments: “This is a prized asset in one of the City of London’s best locations, with excellent growth potential thanks to the impending Crossrail and surrounding redevelopments such as Angel Court which are attracting global tenants and achieving strong rents. The opportunity to further refurbish and extend Garden House makes it a prudent investment for the future and while we are seeing some uncertainty in the commercial market, the City of London will remain a highly attractive location, with high levels of investment coming from overseas, particularly from the Asia Pacific region. 

Barry adds: “The deal reflects our longstanding relationships with overseas investors ranging from funds to private families, and we look forward to continuing to advise and act for those seeking profitable assets in the UK.”

Global law firm CMS Cameron McKenna Nabarro Olswang LLP also acted for the purchaser.