Addington, the property investment and asset management specialist, and its joint venture partners, have sold 8-12 Hessel Street, London, E1 to a private family office for £2,025,000 (£617psf). This followed a competitive bidding process.
8-12 Hessel Street is a freehold block comprising of six apartments (four x 1 bed and 2 x 2 bed) and two commercial units (which had been sold off on long leases prior). The apartments are situated over the first, second and third floors and comprise a Net Internal Area of 3,282 sq. ft. All the apartments are let on ASTs but are let to historic tenants, with a current rent of £107,700 per annum.
The property is located in Aldgate East, Zone 1, well positioned for the City, 0.4 miles from Aldgate East Station (Underground) and 0.5 miles from Whitechapel Station (Overground & Crossrail). The property is also walking distance from Liverpool Street providing easy access for City workers and near to the bars, shops and restaurants of Spitalfields Market.
The property has been actively asset managed by Addington since acquisition. All the apartments are now in good condition and the communal areas have been recently refurbished, enabling Addington to increase rents in line with ERVs before selling.
Fred Verity Associate Partner of Addington Capital said, “Our business plan for 8-12 Hessel Street has been successful. The scheme has been improved and we have reached the right stage in our cycle to sell.”
Matthew Allen, Principal at Addington Capital added, “This deal shows there is still strong private investor demand for freehold residential blocks in London Zone 1. We had competitive bidding for 8-12 Hessel Street and achieved pricing equating to c.5% on gross contracted rents. Investors are confident that the unprecedented rental demand is going to remain for some time to come, particularly given the shortage of PRS stock in London.”
Agents for the vendors were Estate Office.
