Orchard Street acquires 64/76 New Oxford Street, London WC1

Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of 64/76 New Oxford Street, WC1, for £36.5 million on behalf of St James’s Place Wealth Management.

Jaro Real Estate Limited, a private equity property company purchased the property in 2011 on behalf of private clients. Since then it has carried out an extensive refurbishment including recladding and adding a new fourth floor. The property was sold in an off market transaction. The purchase price reflects a net initial yield of circa 4.1% on completion of final office lettings.

Extremely well located to benefit from the new Tottenham Court Road Crossrail Station – scheduled for completion in 2018 - 64/76 New Oxford Street comprises 17,729 sq ft of Grade A offices with two retail units on the ground floor. The retail units are let to Pret a Manger and Itsu off rents reflecting £97 Zone A and £140 Zone A respectively. The first floor of offices is let to Active International at a rent reflecting £67.50 per sq ft and the remaining three floors are currently being marketed at quoting rents of circa £70.00 per sq ft.

The office element of the property has benefited from a recently completed substantial refurbishment involving an extension of the existing floors, the installation of a new curtain wall double glazing system, complete renewal of the plant and the addition of a fourth floor which offers a roof terrace.

Commenting, John Humberstone, Partner at Orchard Street, commented:

“This is a Grade A property in an area of London which has been the focus of intense development and regeneration activity. With a transformation of this part of the West End firmly underway we would expect the property to benefit from further rental growth for both the office and retail space.” 

Commenting, David Hallett, Director at Jaro Real Estate, commented:

“The refurbishment of the property has transformed the presence on New Oxford Street which will be further enhanced and repositioned by the opening of the new Crossrail Station at Tottenham Court Road.“

Nightingale Partners represented Orchard Street Investment Management. Colliers represented Jaro Real Estate Limited.

 David Hanrahan at Colliers is currently acting as letting agent on the office element.