24 Martin Lane, London, EC4

Acquisition, income management and refurbishment of a mixed use, freehold multi-let office and retail property in the City of London’s financial district.

At acquisition, the property provided 32,105 sq ft (2,983 sq m) of well specified office accommodation over five floors and 760 sq ft (71 sq m) of retail space. It was fully let to seven office tenants on leases expiring from 2015 – 2018, and the retail accommodation was fully let to a single tenant on a lease expiring 2018.

Problems with the central plant complicated the formal sale process in 2013 and lead to the property being withdrawn from the market. Trinova carried out a full performance analysis of the central plant and air conditioning system which allowed us to negotiate an attractive entry price of £15.05m reflecting a net initial yield of 7.5%.

Over an investment cycle of 24 months, the central plant was completely replaced and a number of lease re-structured to increase the passing rental level and extend the income term. A sale price of £23.75m was achieved and a realised investment return of 45.5% IRR / 1.98x equity Multiple (Leveraged asset level).