CIT Puts Prime City Asset 12 Arthur Street on the Market for £124.5m

• CIT Group is bringing 12 Arthur Street, a 103,827 sq ft multi-let office building in the City of London, to market with CBRE instructed as sole selling agent, at a quoting price understood to be £124.5 million.
• The pricing reflects a net initial yield of approximately 5.5% against passing rent of £6.954 million per annum (roughly £67 per sq ft), and implies a capital value of around £1,199 per sq ft.
• The building has a WAULT of 8.2 years to lease expiry and 5.1 years to break options, underpinned by a multi-let tenant roster assembled following a comprehensive refurbishment completed in 2020.

CIT Group, the London-focused private equity real estate investor, has appointed CBRE to handle the disposal of 12 Arthur Street, a core City of London office asset close to Bank and Monument stations. The building is being quoted at £124.5 million, a level said to reflect a net initial yield of around 5.5% on contracted income of £6.954 million per annum across the building's 103,827 sq ft. The weighted average unexpired lease term is put at 8.2 years to expiry and 5.1 years to the first tenant break, indicating a reasonably durable but not unbroken income profile typical of a multi-let City building of this type.

CIT original acquired the 104,000 sq ft office asset in mid-2016. During its holding period, the investor undertook a comprehensive, multi-phase repositioning and was largely completed in 2020.