Swedish investor Cityhold has made its second acquisition in the UK with the purchase of 40 Holborn Viaduct in London for £138 mln (EUR 175 mln). Cityhold is a joint venture between two of Sweden's National Pension Funds, who will provide full equity funding for the acquisition.
Swedish investor Cityhold has made its second acquisition in the UK with the purchase of 40 Holborn Viaduct in London for £138 mln (EUR 175 mln). Cityhold is a joint venture between two of Sweden's National Pension Funds, who will provide full equity funding for the acquisition.
The vendor is the principal client fund of UK real estate company Delancey.
The office asset, 40 Holborn Viaduct, was completed in 2008 and comprises 16,000 m2 of office space. It is located within the midtown area of London, and is multi-let to a strong mix of high quality tenants including Cap Gemini UK, Hitachi Rail Europe, GDF Suez E&P UK, Irwin Mitchell, Brewin Dolphin and Pret a Manger (Europe). The average unexpired term certain is around eight years. Contracts were exchanged on 22 August and the acquisition will be completed in due course, Cityhold said in a statement.
'We see this as a solid next step in building a core London property investment portfolio, having completed our West End acquisition of One Kingdom Street earlier this year. 40 Holborn Viaduct occupies a prime island site within Midtown, an area we believe has good prospects for rental growth going forward,' said Per Sjöberg, CEO of Cityhold.
Savills advised Cityhold while CBRE acted for Delancey.
In January, the Swedish property investor made its debut in the UK market with the purchase of the freehold office building at 1 Kingdom Street in Paddington, London, for £230 mln (EUR 278 mln). The transaction reflected a net initial yield of just under 6% including costs.
