The City of London’s Royal Exchange brought to market
The Grade I-listed Royal Exchange in the City of London has been placed on the investment market with a reported asking price of £70m, reflecting a net initial yield of 6%.
The asset – which is situated opposite Bank Station – is being marketed by Savills and Knight Frank.
The asset comprises 50,852 sq ft of retail and restaurant accommodation across 37 boutique-style units. The retail units are let to 21 tenants with a total net internal area of 19,476 sq ft and a passing rent of £2,589,918 per annum. The food and beverage units are let to 16 operators, with a total net internal area of 29,349 sq ft and a passing rent of £2,265,965 per annum.
Tenants at The Royal Exchange include Fortnum & Mason, Hermès, Tiffany & Co., Boodles, Montblanc, Omega, and Georg Jensen. The asset has a weighted average unexpired lease term of 7.9 years to expiry, and 5.5 years to break.
The property is currently held on a long leasehold interest from the Mercers’ Company and the Mayor and Commonality and Citizens of the City of London (The Joint Gresham Committee) from 21 February 2001, expiring 24 December 2115.
The Royal Exchange was last acquired by The Ardent Companies in 2022 for a reported £50m.