Rent review due on £10m property in London

Monday, June 01, 2009

Commercial property purchased by Mountcharm and rented by Time Warner is set for a rent review.

Written by Rosie Waters

A property in London that has just been purchased by Egan Lawson for Mountcharm Limited is overdue for a rent review.

The corporate real estate is currently leased by Time Warner, which has a contract to rent the property for a further five years, reports Property Mall.

Mountcharm bought the office space and the restaurant below it at 44-45 Great Marlborough Street from ING Real Estate Investment Management.

At 19,686 sq ft, the building cost £10 million, which reflects a net initial yield of just under seven per cent.

While Time Warner is only due to be there for another five years, the Ping Pong restaurant below the office space is to be leased out until 2030.

It is thought that Mountcharm's investment will bring in a total income of approximately £730,000 each year, although a rent review of the office space was due to be conducted in February.

Mountcharm is not the only investor considering purchasing commercial property while the price is low - media reports suggest that Secret Millionaire star Nick Leslau and easyJet founder Sir Stelios Haji-Ioannou are considering purchasing corporate real estate.

Source: ask-re The Property People LLP