The National Farmers Union Mutual Insurance Society Ltd (NFU Mutual) has purchased the Old Fire Station in Fitzrovia for £21.6million, represented by Springer Nicolas & DTZ. The vendor was Aberdeen Asset Management, represented by Colliers International.
The deal represents the significant continuing demand for offices in Fitzrovia as Grade A vacancy rates remain at historic low levels, which has led to a sharp uplift of 23% in rental values throughout the last 12 months.
Built in the early 20th Century and refurbished/converted into offices in 1999, the vacant building totals 18,699sq ft (1,737sqm) and benefits from a spectacular vaulted ceiling with exposed brick at ground floor level.
The building is prominently located on Maple Street, with proximity to Tottenham Court station, subject to the upcoming benefit from Crossrail, as well as the restaurant/bar mecca of Charlotte Street.
David Hidderley, NFU Mutual, commented: “Following recent purchases in Shoreditch and Farringdon we are delighted to have secured the Old Fire Station, Maple Street. With Fitzrovia office void rates at historically low levels of 3.0% we see strong potential for rental growth and future performance. We will be undertaking an extensive refurbishment to capitalise on the growing Fitzrovia occupier demand.”
Richard Howard, Head of Central London Agency at DTZ, commented: “Occupier demand in Fitzrovia has increased quarter-on-quarter for the last 18 months and has gained a reputation as being a hub for creative industries and forward thinking corporates. The arrival of global luxury brands such as Estee Lauder after many years in Mayfair is testament to the sea change that this location has undergone.
“Equally, investor appetite is growing and with the opening of Crossrail expected by 2018, we can expect capital and rental growth to continue as more occupiers become attracted to the area. Most occupiers are looking for character and DNA in their office surroundings and the Old Fire Station, with its history and its exposed brick barrel vaulted ceilings and steel beams, has ample amounts of these.”
