Award-winning London developer and asset manager LBS Properties has secured the 43,000 sq ft freehold Defoe Court building at 44 Featherstone Street, EC1, for circa £32m from Paris-headquartered Amundi Asset Management. The deal reflects an initial yield of around 4.5% and forms part of a wider 'Amundi Collection' portfolio disposal.
LBS Properties has simultaneously close funding for the project with a £29m loan from GreenOak Real Estate, with plans to fully refurbish and potentially extend the building. This marks the second lending deal undertaken with GreenOak by LBS.
Situated just 150 metres from the iconic Old Street roundabout in the heart of the area's thriving tech cluster, the building is currently let to five tenants and comprises 43,146 sq ft of accommodation, arranged over lower ground, ground and five upper floors. In addition to Old Street station just moments away, the building is in close proximity to Moorgate and Liverpool Street stations, with the new Elizabeth Line services due to open imminently.
Defoe Court marks LBS Properties’ second office project in the area. Working with renowned Buckley Grey Yeoman architects, it is currently developing Chapter and Verse on the other side of the roundabout - the refurbishment of an iconic Victorian school house and creation of an adjacent new build office, providing a total of 50,000 sq ft of prime office space.
Nick Crawford, managing director of LBS Properties, comments: “The acquisition of Defoe Court reflects our confidence in the Old Street area as a prime City Fringe office location, complementing our current Chapter and Verse development. We are delighted to have simultaneously closed the senior loan with GreenOak, which will allow us to deliver another high quality scheme in an area that continues to enjoy strong tenant demand and rising rental values, largely driven by the tech and media industries.”
“This will be bolstered by the significant redevelopment plans for the roundabout itself, which is due to become more pedestrian and cycle friendly with significant new public realm.”
Martin Sheridan, Principal, UK Debt at GreenOak comments:
"GreenOak is pleased to support LBS in the acquisition and repositioning of Defoe Court. This transaction reflects the core principle of our lending activities, which is to enable our sponsors to implement their business plan. We look forward to continuing to support LBS."