Sidra Capital UK has completed the purchase of Weston House in London’s Midtown. The 74,755 sq ft office block is fully-let and currently home to law firms Mischcon de Reya and Peace Crowell, as well as advertising company Celtra. At £97m, the Holborn office building comes at a yield just over 5% for the Saudi-based company.
Sidra Capital bought the office building from Frogmore Real Estate Partners, who had put the property on the market through JLL this year. Frogmore acquired the office building in 2015 from Allianz Real Estate for £60.5m before carrying out major refurbishment. The office block had thought to be close to being sold to another party for a reported £103m but the deal did not materialise.
Weston House, 242-246 High Holborn, is already home to multiple large companies including law firms, government departments and advertising agencies. The ground floor spaces are retail and leisure units, currently let out to Waitrose and Fitness first. The building reached full occupancy last year when Mischon de Reya let 17,000 sq ft office space on a 13-year lease. The property is within London’s Midtown, an area which has seen a boost in commercial property lettings in recent years.
Weston House is the latest in a long line of acquisitions for Sidra Capital UK, who have spent around £300m in the UK in the past ten months. Before this, their most recent acquisition was a Travelodge hotel at Heathrow Airport’s Terminal 5 for £40m. Their acquisition drive in the UK this year has included Great Western Retail Park in Glasgow for £57m; 37 Esplanade in Jersey for £45m; The Hub office building in Bristol for £33m and Maple Court in Watford for £25m.
Sidra Capital UK is a subsidiary of Sidra Capital, the large Saudi Arabian financial service provider. Their UK ancillary has been active in the UK real estate market since 2011. Probably their most notable acquisition was No.1 Pall Mall East in London’s Mayfair, for which they agreed on an £85m deal in 2016 from GLL Real Estate Partners.