UK based property development group, Terrace Hill Group (AIM: THG) (‘Terrace Hill’) announced the sale of its freehold interests in the Kean House development in Covent Garden for £16 million, which represents a net initial yield of 6.4%.
The Covent Garden property was bought by a major UK institution. According to Terrace Hill, 6 Kean Street comprises of 26,000 square feet of prime ‘Grade A’ office space over a basement and nine upper-storeys. The property also hosts two retail units fronting Kingsway, occupied by Costa Coffee and Adecco.
The sale follows the recent re-letting of the entire fifth floor of the building to ChannelAdvisor. The e-commerce service group have taken the space on a five-year lease at a rent of £127,200 per annum.
Terrace Hill Chief Executive, Philip Leech commented on the property sale and the broader trends in London’s property: "This sale demonstrates that there is strong demand in the market for good quality, well-managed assets particularly central London offices. The disposal will allow us to recycle the capital into profitable new projects, further enhancing our shareholder's capital invested in our business."