L&G set for lift-of at Hammersmith's Aircraft Factory

LGIM Real Assets is buying The Aircraft Factory in Hammersmith, west London, an office which once played a key role in producing Mosquito bombers during World War Two, from Westbrook for £63m, CoStar News can reveal.

The transaction would represent a 6.5% yield.

The Aircraft Factory is located on 1.30 acres close to Hammersmith Broadway and has been comprehensively refurbished to provide Grade A office accommodation across three inter-connecting blocks

The Aircraft Factory comprises a total net lettable floor area of 77,502 sq ft (7,200.2 sq m) over ground and five upper floors. Office suites range between approximately 400 and 6,571 sq ft with most units capable of being inter-linked to increase flexibility
The office accommodation is multi-let on 16 leases with 10,320 sq ft (in two suites) left to let.
Assuming a 12-month rent guarantee on the vacant accommodation at £55 per sq ft, the proposed net rent will be £4,319,414.41 pa (£55.75 per sq ft).
Tenants include Sybarite, Firefly, Aveva, Magnetise, Gaming Factory, Swisse Wellness, Kau Media Group, Cyan Blue Odds, Deltek, Clearpeople, Vista Entertainment, Gram Games, Moley Robotics and Origin Coffee. There is an AWULT of 4.25 years.

Moley Robotics (pictured above)
The asset is owned in a Jersey SPV.
The Aircraft Factory reached practical completion in May 2016 following a comprehensive refurbishment. Office leasing has been dealt with by CBRE, Frost Meadowcroft and HNG.
Matt Jarvis, Fund Manager of the Property Fund at LGIM Real Assets, said: “Westbrook has created a very interesting product at The Aircraft Factory. It is exceptionally well designed to meet the future needs of modern office occupiers. This has been demonstrated in the rapid take-up of space here. We are pleased to bring an asset of this quality into the fund and at an attractive yield.”
GM Real Estate is handling the disposal. BNP PRE is advising LGIM Real Assets.
Costar Article 16 February 2018