This is significantly less than build cost and considered below VP value.
The property is currently fully-let to Atos IT Services UK Limited, the world’s third largest managed IT security services provider at a passing rent of £579,750 per annum (£14.88 per sq. ft.) with a lease expiry in April 2023.
Given the entry pricing of this asset we have different options available depending on what the tenant wishes to do; we could invest in the asset alongside the tenant for both parties long term benefit, we could seek a new tenant or tenants if the existing one vacates as the building provides the flexibility to do so, or we could seek redevelopment. In the meantime, we are obtaining a great return for investors.