UK REIT British Land is selling an office building in London's Soho district to domestic investor Amazon Properties for £26 mln (€32 mln) or a 2.5% net initial yield.

UK REIT British Land is selling an office building in London's Soho district to domestic investor Amazon Properties for £26 mln (€32 mln) or a 2.5% net initial yield.

The multi-let building at 52 Poland Street provides 20,500 square feet (1,900 m2) of space spread over a basement, ground and seven upper office floors.

The investment volume reflects nearly £1,300 per square foot. The total passing rent of £693,373 equates to £33.84 psf. The ground and basement floors are occupied by Yo! Sushi and Lucky Voice karaoke bar.

Located in once sleazy but increasingly trendy Soho in London's West End, the building is 300 metres from the new Crossrail Station at Tottenham Court, and a short walk from Oxford Street. Amazon Property is acquiring the freehold of the building for a joint venture at 51% ahead of the March 2014 book value.

Tim Roberts, head of offices at British Land, said: 'The expiry profile at 52 Poland Street means there is potential for vacant possession of upper parts in June 2015. The site attracted very strong interest, reflecting the strength and depth of the West End investment market. It is an opportune time to sell and focus on projects elsewhere in our portfolio.'

CBRE and Irwin Mitchell advised British Land. Amazon Property was unrepresented.