REInvest Asset Management has bought the 30 Lombard Street office asset in London from McKay Securities for £76.5m (€84.1m).

The Luxembourg-based asset and investment specialist said the asset was acquired for the Dereif SICAV-FIS fund which invests in projects across Europe.

The real estate special fund was launched in Luxembourg and its principal investor is a major German insurance company.

The newly developed 58,585sqft building is leased for 15 years to the St James’s Place Wealth Management Group.

Hans Stuckart, managing director of REInvest Asset Management, said: “London remains a robust and resilient market, offering good investment opportunities and very attractive purchase yields. Even the ongoing Brexit negotiations are having no noticeable effect in our segment, so we are expecting to see sustained growth.

“Our excellent international network enabled us to secure this premium property. With its long-term lease and well established tenant, it fits perfectly into our investment strategy.”

McKay Securities said the headline sale price of £76.5m reflects a net initial yield of 4.16% on a topped-up basis and a capital value of £1,308 per sqft. Net sale proceeds of £68.5m will be used to pay down debt, prior to further investment in new acquisitions and portfolio opportunities.

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