The sale presented a rare opportunity to acquire a prime office building in the heart of Kings Cross, which is now Europe’s Tech and Innovation Centre. Newly refurbished by Stiff + Trevillion Architects to a high specification, Instrument House provides a total of 12,232ft2 of beautiful office space over lower ground, ground and four upper floors.
After we let the building to four occupiers, the total passing rent being generated was £757,639.50 per annum from tenants in four sectors: PR (CC Group Communications Ltd); management (The Foundation Growth Consultancy Ltd); tech (Muso TNT Ltd); and online marketing sectors (Bounce Interactive Ltd and Mount Media Online Ltd).
Our instructions were to seek offers in excess of £14,200,000, reflecting an attractive net initial yield of 5.00% (assuming purchasers costs of 6.73%). After a successful marketing campaign we eventually agreed terms at £15,000,000 to a private Hong Kong buyer, representing £1,226 per ft2: a record price for the area.
While that’s a testament to the quality of the development as a whole – with its particularly winning combination of architecture, design and specification – it’s also a reflection of just how far Kings Cross has come and how fast in such a short space of time.
From being on the fringes of the city fringe to becoming a prime destination in its own right, the neighbourhood has grown and evolved tremendously. There is a remarkable sense of completeness to Kings Cross with its high quality homes and offices extremely well served by an incredible selection of restaurants, bars, shops and striking public spaces. Not to mention, of course, the Eurostar terminal at St Pancras International.
It is extraordinary for an area to pop on the radar of long-term international investment buyers so rapidly, but then again, Kings Cross is a long way from ordinary.