Cordea Savills buys London scheme for EUR 63m

Cordea Savills European Commercial Fund has exchanged contracts with AIM-listed Terrace Hill Group to acquire 129 Wilton Road in Victoria, London. The investment volume of £53.5 mln (EUR 63 mln) reflects a net initial yield of 5.78%.

Terrace Hill said that the sale is due to complete before the end of December 2010. The proceeds will be used to repay the debt secured against the property and the balance for reinvestment into new projects.

Cordea Savills European Commercial Fund is an open-ended Luxemburg based fund investing across Europe.

129 Wilton Road is a 6,300-m² office-dominated scheme which Terrace Hill completed in 2008. The property comprises 6,000-m² of Grade A office space as well as 210 m² of ground floor retail accommodation. The property is being sold with planning permission for an additional floor which provides potential for a further 241 m² of office space.

The building is fully let. The average weighted lease term, to break, is about 6.5 years and the building provides a total rent of around EUR 3.9 mln per year.

DE & J Levy advised Terrace Hill and Savills acted on behalf of Cordea Savills.