BMO Commercial Property Trust has announced the disposal of Cassini House located in St. James’, London to unnamed sellers believed to be from Hong Kong and Singapore.

Kirby

Kirby

The prime multi-let freehold office building was sold for £145.5 mln (€170 mln), reflecting a premium of 11% over the last external valuation of 30 June 2021 and 19% over the year-end valuation of 31 December 2020.

The disposal of the asset - the second largest in BMO's portfolio - represents the culmination of a long-term business plan which involved a complete refurbishment, introduction of new tenants and re-gearing of leases.

This disposal is in line with the vendor's strategy of rebalancing the portfolio and using the proceeds 'in the best interests of all shareholders'.

'Following a competitive bidding process in which the Company received several high-quality proposals, we are pleased to achieve a strong net initial yield of 3.2% for this trophy property and crystallise significant value for the portfolio,' said Richard Kirby, lead manager. 'This disposal will allow the company to promptly recycle capital in a strong pipeline and adjust sector weightings. We look forward to providing a further update of the use of proceeds in due course.'