20th September 2013

199 – 204 High Holborn, London

A prominent 48,000 sq. ft. office and ground floor retail property in the heart of central London. Ediston acquired the property in May 2010 for £13.25m, 8.3% NIY. A leasehold property (with 70 years unexpired), the property was let in its entirety to British Telecom with 15 years unexpired.

The property offered good secure income with numerous asset management opportunities as the tenant was not in occupation.


Purchased for £13.25m
Surrender of lease completed for a significant reverse premium to the Landlord.
Sold with Vacant possession in November 2012.
IRR achieved on sale of 79.5% pa from purchase.


  • Agreed the outstanding rent review with the freeholder securing a reduction in rent payable under the Headlease.
  • Secured planning consent for a 138 bed hotel in December 2011.
  • Concluded a pre-letting to a PLC hotel operator in October 2011. Ultimately not completed.
  • Agreed a surrender with BT (the tenant), retaining the ground floor retail sub-tenants, in return for a substantial reverse premium.
  • Agreed a purchase of the freehold interest for £13m.
  • Simultaneous with the surrender of the lease and purchase of the freehold, sold the Investment to Ennismore Capital for a Hoxton Hotel in November 2012.