Orchard Street Investment Management LLP has completed the acquisition of 6-10 St Andrew Street from Prestbury for £23.5 million, reflecting a net initial yield of 5.27%.
The acquisition was made on behalf of St James’s Place property funds.
The building is let to five tenants, including Canon UK Ltd, ET Group Services BV, Arcus Infrastructure Services LLP, Carter-Ruck Solicitors and Pinnacle Housing.
Barney Rowe, Partner at Orchard Street, commented: "We are pleased to have secured this highly reversionary investment. With current average passing rent of under £31 per sq ft, we have identified significant potential to grow income, especially given its location in one of the most exciting areas of London, attracting a diverse range of high profile occupiers from the financial, corporate and professional sectors. We are confident that we will see strong rental growth, particularly on the back of Crossrail, the potential new Goldman Sachs campus development and New Street Square where rents have exceeded £55 per sq ft."
Prestbury was advised by Franc Warwick. Orchard Street was advised by BNP.