Feldberg Capital has acquired a 116,000sqft London office scheme in London for approximately £172m (€199m) from UK property group Great Portland Estates.
Feldberg has acquired wells&more, 45 Mortimer Street, London W1, on behalf of real estate firm Fastighets AB Balder.
The mixed-use commercial scheme in Fitzrovia comprises 97,342sqft of office accommodation across seven floors, with private terraces on the fourth and fifth floors, two retail units and a communal courtyard.
David Turner, CIO at Feldberg Capital, said: “This acquisition reflects our strong conviction in the Central London office market, underpinned by extensive market research and occupational data. The combination of attractive entry yields, significant day-one rental reversion of typically 20-30%, and the potential for further rental growth of more than 25% over the medium term creates a compelling risk-adjusted investment case.
“With many of the leading research houses now forecasting an inward yield shift over the next five years, the outlook for investors is becoming increasingly positive.”
Jamie Acheson, head of UK investment at Feldberg Capital, said: “wells&more is a fantastic building in a prime, growth area, which perfectly embodies our investment thesis for Central London. Our sourcing capabilities across the London investment market continue to generate compelling opportunities, and we believe the current point in the cycle offers exceptional value for our investors.
“It is a pleasure to be working alongside Balder on this transaction, a long-standing client and valued partner whose vision and conviction in the Central London market is closely aligned with our own.”
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