Israeli insurance and finance group Harel has sold 50 Broadway to a private investor for a price reflecting a net initial yield of c.3.75%.

Harel with development partner Valeo Capital refurbished the building to create 72,560 sq ft of high-quality office accommodation arranged over lower ground, ground and nine upper floors. It was pre-let in its entirety to the UK Government for a term of 20 years (from June 2021) subject to a tenant break option on the 15th anniversary of the term.

Itzik Tawil, Head of Global Real Estate and Credit at Harel Group, commented: “We are pleased with this successful transaction, which is a great achievement for Harel in a time of challenging, volatile markets and a high-interest rate environment. It is Harel’s long-term strategy to invest in diverse real estate properties over different sectors and strategically located in major urban centers across the globe, in order to optimize our Life & Savings portfolios returns for our clients.”

Matthew Doyle of Valeo Capital added: “We are delighted to have worked together with Harel on the repositioning, letting and sale of 50 Broadway. The transaction demonstrates continued investor demand for prime office assets despite the economic backdrop”.

Stephen Down, Chairman of Savills Central London Investment, comments: “Against a backdrop of substantial market volatility, the sale of 50 Broadway demonstrates the resilience of global investor demand for top quality office accommodation in established locations, particularly when coupled with the scarcity of 18.5 years of undoubted UK Government income”.

Harel was advised by Savills. The buyer was represented by Investra Capital.