The Aviva Investors Property Trust has completed the purchase of 21 New Street, an office property situated within 100 metres of London's Liverpool Street Station.
The Aviva Investors Property Trust has completed the purchase of 21 New Street, an office property situated within 100 metres of London's Liverpool Street Station.
The building, occupied by the banking, financial services and insurance sectors, in addition to the City of London Police, was purchased for close to £30 mln (€36 mln), reflecting a net initial yield of over 5%.
Aviva said it expects the location and surrounding areas to undergo further improvement with the opening of the Crossrail station at Liverpool Street in 2018.
'21 New Street is situated in a popular location and is a property which we feel can attract significant rental and capital growth in the future,' commented Philip Nell, manager of the Aviva Investors Property Trust. 'Although the fund is currently strategically underweight to "growth implicit" central London assets, we feel this property offers a unique opportunity to add significant value through refurbishment, extension and repositioning of the asset based on our medium term outlook for risk-adjusted returns in this sub-sector.'