Lowndes House currently produces a rental income of £280,000 ($392,000) per annum, and the developer expects to gain vacant possession in less than three years. A planning application for at least 110,000 square feet net of office space on the combined sites is expected before the end of 2001.
City North's acquisition cost for the combined 1-23 City Road is in the region of £100 ($140) per sf net. The cost of converting the buildings into Grade A office accommodation is expected by the company to come in at less than £200 ($280) per sf But on completion City North anticipates a rental value in the region of £5 million ($7 million) per annum and a capital value of more than £60 million ($84 million).
Michael Sherley-Dale, Managing Director of City North, said the group now has approximately 300,000 sf net of raw material awaiting development.
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