LONDON (Hypebot) – Warner/Chappell UK has sold its office in Kensington, London to John Lyon’s Charity for £22.6m.
The deal, which delivers a 3.6% yield, also sees the major publisher lease back the property for another 15 years, with a break option after a decade.
According to Property Week, the rent will cost Warner/Chappell £790,000 a year, which equates to £49 ($71)/sq. ft.
The premises, 46 Kensington Court, is a former electricity generating station, which was originally constructed in the 1880s and the building went through a major refurbishment in January 2015 that has enabled the company to consolidate its London operations from across six buildings to three.
“Off the current rental base, we consider that the investment offers excellent prospects for growth over the medium to longer term,” said Ross Owen, Cluttons’ head of investment and fund management, which advised John Lyon’s Charity.
Warner/Chappell UK is headed up by MD Richard Manners.