Hong Kong investor CC Land has completed the acquisition of One Kingdom Street, W2, from TH Real Estate for £292m – a net initial yield of 4.86%.
The 264,898 sq ft office building was acquired from TH Real Estate on behalf of the Cityhold Office Partnership in an off-market transaction. The price paid represents a capital value of £1,100 per sq ft.
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 for the Cityhold Office Partnership, 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 for TH Real Estate, said: “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 focused on actively managing the residual £700m London portfolio and selectively redeploying the capital into other London sub-markets.”
Michael Elliott and JLL acted for TH Real Estate; CC Land was represented by Kieran D. Cotter & Co.
• To send feedback, e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
