Purchased for £42.75m in August 2011, Euston House represented good value in a strong market and, thanks to an exclusive relationship with our investor, Riverside Capital was able to secure it before competing firms. The location play alone would have been enough to produce significant returns, but we saw the opportunity to create further value via a lease restructure with existing tenant, Learning Tree International. After negotiating terms with Learning Tree, we signed them onto a new ten year lease over the space they occupied and the fee they paid to do so was used to cover the costs of a rolling refurbishment of the building. Re-launching the refurbished asset and re-letting the available space in the open market meant we were able to establish a new rental tone for the building.
“Just by doing the deal with the tenant we increased the rent immediately and then had enough cash to refurbish the building.”
- Sq. Ft. 106,145
- Refurbishment cost £2m
- Rent increase 112%
- Equity multiple 1.87x