Riverside Capital has exchanged contracts to purchase “Old Street Works” on City Road, London EC1 – the heart of London’s “Tech City”.
The property investment company will raise £16.2m of equity from its investor base, together with senior debt provided by Lloyds Banking Group to complete the transaction.
The ground and lower ground floors are let to retail tenants including Nando’s and Bodean’s restaurants, with the four upper floors being office accommodation currently 50% let to a range of tenants, mostly within the Technology, Media and Telecoms (TMT) sector.
The term of the investment will be approximately 3.25 years from completion. Within this time-frame, Riverside Capital aims to deliver its business plan of raising rents from existing tenants at rent review, and letting vacant space.
“Tech City” presents an exciting opportunity for investors looking to participate in the London market, having currently one of the lowest office vacancy rates of any sub-market in London and a robust growth story: the TMT sector now employs more people in London than the finance industry and Old Street Works’ postcode, EC1V, houses London’s highest concentration of tech companies.
Dominic Wright, Group Chief Executive at Riverside Capital, commented: “The acquisition of Old Street Works is our first investment in London for several years and we are pleased to be able to give our investors access to one of the most exciting locations in this great city.”