Chinese Estates has acquired 11/12 St James’s Square for £175m, reflecting a net initial yield of 4.45%, reports Savills.
The 80,000 sq ft building was sold by Savills Investment Management on behalf of Malaysian fund, the Employees Provident Fund (EPF). CBRE advised Chinese Estates while Savills acted for Savills IM.
The office building is multi-let to several tenants, including Blackstone and Marble Bar Asset Management, and is the third building on the square to be sold this year.
This follows the sale of 8 St James’s Square in January for £213m and separately, the sale of 3 St James’s Square for £135m last month. All three buildings have been bought by Hong Kong based investors.
11/12 St James’ Square represents the fourth important acquisition Chinese Estates has made in London in the past 2 years and adds to their portfolio of prime Central London assets.
James Rood, Senior Director in the Central London Investment team at CBRE commented: “We are delighted to have acquired 11/12 St James’ Square on behalf of Chinese Estates following a competitive bidding process. It will be a fantastic addition to their portfolio and is another example of the strength of appetite and commitment from overseas capital, particularly from Asia, for prime London real estate.”
Patrick Lowther, Property Fund and Investment Manager at Savills Investment Management added: “The sale of the asset is in line with our client’s diversification strategy which focuses on providing optimal and long-term sustainable returns, while also enabling them to reinvest the proceeds into other prime assets.”