Savills, on behalf of the fixed charge receivers, Tony Wright and Alastair Massey of FRP Advisory, has been appointed to sell the majority freehold of the Relay Building. A 22-storey development comprising Grade A office, education and retail accommodation arranged over lower ground, ground and six upper floors, as well as 207 residential apartments, which have already been sold off. Savills is quoting a guide price of £45.3 million reflecting a highly attractive net initial yield of 11%.
The 102,416 sq ft Relay Building was developed by Redrow in 2014, and designed by Sigma Seifert. It is multi-let to four office and educational tenants and three retail occupiers, generating a passing rent of £5,323,697.98 per annum.
The site benefits from positive pre-application for a change of use to education across the office floors and is situated outside the London Borough of Tower Hamlets’ Article 4 designation, and therefore benefiting from permitted development rights, and the opportunity to seek prior approval for change of use to residential.
Paul Bassi, a director in Savills City investment team, comments: “We’re pleased to be offering the rare opportunity to purchase a 22-storey City tower. What makes the Relay Building appealing to a potential buyer is its strong fundamentals – it’s situated in the heart of Aldgate, meaning it not only has excellent connectivity, it also benefits from its proximity to the City, Spitalfields and the Tech Belt – appealing to a range of tenants. It already has strong rental income from a range of office and retail occupiers, and with the flexibility on planning, there is the possibility to adapt the building for alternate uses.”
Anthony Simmons, a director at FRP Advisory and on behalf of the Joint Receivers of The Relay Building, said: “This is a unique opportunity to acquire a multi-faceted real estate asset in the sought after Aldgate area of London. With the development offering long term income opportunities, demand is expected to be high and interested buyers are encouraged to make contact with the Savills sale team promptly.”