Kennedy Wilson Europe Real Estate has paid £207.5m (€265m) for a London office asset sold by a Green Property entity.
The listed property company said it bought the corporate vehicle that owns 111 Buckingham Palace Road in London’s Victoria district.
The 227,165sqft asset was held by Kish Holdings, managed and controlled by Green Property.
Kennedy Wilson said the sale of the fully let building reflects a 5.1% gross yield.
The Victoria district of the UK capital has attracted significant investment in the current cycle.
Canada Pension Plan Investment Board (CPPIB) agreed a joint venture with the UK’s Land Securities in 2012 to redevelop a 5.5-acre site opposite Victoria station.
Completion on the residential, office and retail development is expected between 2016 and 2018, with the site’s final value estimated at £1bn.
With Grade-A office vacancy at 1.5% and prime headline rents above £80 per square foot, the Victoria market is “thriving”, according to Mary Ricks, president and chief executive at Kennedy Wilson Europe.
She said: “The area is benefiting from substantial investment and redevelopment, which will see its attractiveness grow as a West End destination.”
