Alex Kim, Associate Director of office agency at LSH, said: "The building provides efficient floor plates of c. 26,000 sq ft which are rare in the Farringdon area and we believe will attract occupiers from across Central London. Recent transactions including Amazon, Saatchi & Saatchi and Hill & Knowlton are testament to the galvanising effect Crossrail is having on the Farringdon office market."
Farringdon a central transport hub
The eight-storey 181,000 sq ft office building is located near Farringdon station. The area will become a central hub for Thameslink, Crossrail and London Underground services and is already driving rental growth as predicted in LSH’s research report “Changing Boundaries”.
Demand stong for refurbishment assets
Michael Adcock, Associate Director of capital markets at LSH, added: "This transaction adds another enviable project to Mercer’s portfolio, having successfully delivered the opportunity following a particularly competitive bidding process.
"Demand remains strong for refurbishment assets offering good property fundamentals, no more so than in Central London where parties are looking to achieve double-digit returns."
Follows successful investment deals for LSH
The purchase follows a number of successful investment deals for LSH, including the £118.6m sale of the Project Neo portfolio and the £48.6m national portfolio acquisition for Helical Bar.
Savills advised the vendor, a consortium including Capita and the equity holder. The property is single let to international Law firm CMS Cameron McKenna LLP on a 25 year lease expiring in July 2015.