This West End property was bought by Standard Life on behalf of its UK Property Fund from Capital & City at a 5.6% yield.
The building is a mixed space including offices, residential accommodation and three restaurants.
Manager of the UK Property Fund, Standard Life Investments, Nigel Chapman commented “This acquisition provides the fund with a prime, well specified West End building, multi-let to six tenants with an average unexpired lease term of 7.5 years. We anticipate strong rental and capital growth in this sector, and believe that the specific timing of lease events within the building should deliver strong performance to the fund. Furthermore it increases our West End exposure to 12% in line with the fund’s strategic positioning”.
This is Standard Life’s second purchase brought to light in the last month on behalf of the UK Property Fund. This has enabled them to reduce their cash position to 8.25%.
Nigel Chapman continued “We are currently in active discussions on a number of other opportunities and expect to reduce this position further in the near term”.