UK - CB Richard Ellis Investors has confirmed the sale of Mutual House, owned by the pension scheme of the British Broadcasting Corporation (BBC), for £30m (€32.1m), reflecting a yield of 5.4%.
The 27,187 square foot building in London's Regent Street comprises three prime retail units on the ground floor, which are currently let to Ferrari Store, The Pen Shop and Church's Shoes, and six floors of refurbished office accommodation.
One of the retail leases was recently surrendered, but a new 15-year lease has been agreed with a 10-year break option at a higher rental level.
"We are very pleased to announce the sale of the Regent Street building which is a prestigious retail location in the heart of London's West End," said Richard Everett, senior director for the UK managed accounts group at CBRE Investors.
"This transaction demonstrates the demand for prime retail and office space as buyers are re-entering the UK property market."
The BBC confirmed last month that an offer had been made for the property. (See earlier IPE Real Estate story: BBC receives offer for London office)
The BBC pension fund has a direct UK portfolio with 64 properties and a market value of £394.8m, managed by CB Richard Ellis.
The pension scheme also invests indirectly in the UK and continental Europe through CBRE Investors, and invests in US real estate through Grosvenor Americas.
No comments yet