Having pre-let 80% of The Smithson – CPF’s newly refurbished office building in Farringdon – to Macmillan Publishers on a 15 year lease we have let the remainder of the building to a technology company. The new tenant, Airsorted, occupy the ground and lower ground floors and have relocated to The Smithson as their head office location. We secured a premium rent in excess of our target which marks the end of a successful asset management project for CPF in repositioning the property through a comprehensive refurbishment. This asset is now fully let and in total produces a rent of in excess of £3 million per annum which is 83% above the rent that the previous tenant was paying prior to the refurbishment.
In general the London office occupier market has shown resilience since the June 2016 referendum result and the successful letting campaign at The Smithson illustrates how pockets of the London office market such as Farringdon have outperformed to deliver market-beating returns. We are optimistic about Farringdon’s prospects as it will be the only station in London where the London Underground, Crossrail, Thames Link and National Rail converge making it one of the most desirable office locations in London and this infrastructure is one reason why we forecast continued rental growth in the location.
