TH Real Estate, on behalf of the Cityhold Office Partnership (CHOP), has sold One Kingdom Street, London for £292m, representing the net initial yield of 4.86% and a capital value of £1,100 per sq ft.
The prime office was bought by Hong Kong investor C C Land Holdings in an off-market transaction. The landmark office building comprises c.264,898 sq ft (24,610 sq m) of Grade A office space set over nine floors. Located in Paddington Central, the building has excellent access to transport links providing good connectivity to London, Heathrow and the South West.
Completed in February 2008, One Kingdom Street was designed by Sheppard Robson architects and is let to tenants including Vodafone, Shire, Mysis and Statoil. The weighted average unexpired lease term is 6.5 years (to breaks) and the average office passing rent is £55 per sq ft.
Jasper Gilbey, Fund Manager, Cityhold Office Partnership, TH Real Estate, said: 'The sale of One Kingdom Street is further evidence of the Cityhold Office Partnership seeking to realise performance once asset management initiatives have been successfully implemented. The venture will actively seek to reinvest the proceeds throughout 2017 – with a focus on gateway continental European cities such as Berlin, Munich, Paris and Madrid.'
Peter Neal, Senior Portfolio Manager, TH Real Estate, said: 'We are delighted to have sold One Kingdom Street. This sale marks the end of the London disposal programme having sold the Peak in Victoria in December last year for £145m. Efforts will now be focussed on actively managing the residual £700m London portfolio and selectively redeploying the capital into other London sub-markets.'
Michael Elliott, JLL and Ashurst acted for TH Real Estate. C C Land Holdings was represented by Kieran D. Cotter & Co and Addleshaw Goddard.
Union Investment Real Estate and Aviva Investors have sold One Kingdom Street for £230 million to Cityhold Property, a joint venture between the First and Second Swedish National Pension Funds.
Source: PropertyEU via mellersh.co.uk