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Fidelidade and Resolution Put Smithson Plaza on the Market for £200m

CRE Desk

CRE Desk

— 1 min read
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Fidelidade and Resolution Put Smithson Plaza on the Market for £200m
Smithson Plaza (image from Google Earth)
  • Smithson Plaza, St James’s, SW1, is on the market with a guide price of £200m. It reflects a NIY of 4.72% and £2,728 per sq ft. Colliers and Newmark are understood to be joint agents. The owner is Fidelidade, with Resolution involved on the ownership side.
  • Smithson Plaza is a mixed-use estate in the core of St James’s. It comprises three buildings - the Bank Building, the Denham Building and Smithson Tower, the latter being the only office tower in St. James's, with up to 14 floors. The total area is 79,846 sq ft, covering office, retail, restaurant and residential space.
  • The building is held on a leasehold from the Crown Estate with 123.5 years remaining and gearing of 10%. Net rental income is approximately £9.6m per annum.

Portuguese insurer Fidelidade Property – owned by Hong Kong-listed conglomerate Fosun International – in partnership with asset manager Resolution Property, has brought the landmark Smithson Plaza estate in St. James's to market with a guide price of £200 million. Joint selling agents Colliers and Newmark have been appointed to manage the capital deployment process. Located on St James's Street, the 79,846 sq ft mixed-use complex is held under a long leasehold interest from freeholder The Crown Estate, with 123.5 years unexpired and a head rent gearing of 10%. Originally constructed in 1964 for The Economist by celebrated architects Alison and Peter Smithson, the estate comprises three distinct structures set around a central raised plaza: the 14-storey Smithson Tower (the only standalone office tower in the St. James's submarket), the Denham Building, and the Bank Building. The estate generates a net annual rental income of roughly £9.6 million across office, high-street retail, restaurant, and luxury residential uses. The £200 million guide price translates to a 4.72% NIY and a capital value of £2,728 per sq ft. Fidelidade acquired the long leasehold in late 2020 for circa £160 million from Tishman Speyer, with Resolution Property managing subsequent asset management initiatives, including high-profile office and restaurant lettings.

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