RX London launch the sale of 22 Kingsway, WC2
January 2022 | News
22 Kingsway provides an opportunity to acquire a prime Midtown investment with the potential to extend and the ability for a change of use to hotel upon lease expiry in 2025.
A prominent building with a 77 metre frontage to Kingsway, the property currently provides a total usable area of 123,863 sq ft. The office accommodation (90,558 sq ft NIA) is let to King’s College London until September 2025 at a passing rent of £3.95 million per annum, equating to a low rent of £43.62 per sq ft. The remainder of the building comprises The Peacock Theatre (33,305 sq ft GIA ) which is let until March 2054 at a peppercorn rent.
On expiry of the office lease the building can be used for either offices or hotel. A feasibility study has been undertaken showing the potential to add two floors, subject to planning, providing the opportunity to deliver a Grade A office scheme after refurbishment and extension. Planning consent was granted in 2019 for a 313 bed hotel and Westminster City Council have confirmed the consent has been implemented.
Offers are invited for the freehold interest in excess of £82,000,000 reflecting a net initial yield of 4.50%.
This represents £662 sq ft on the existing total net usable area, £905 per sq ft on the existing office element and £685 per sq ft on the existing gross internal area of the offices.
RX London are instructed alongside joint agents Constantine Real Estate.