Evans Randall, the privately held UK investment banking and private equity group, has acquired Sovereign House in London’s Docklands for £27 mln (EUR 32 mln) in a joint venture with private investor clients from Saudi Arabia. The deal reflects a net initial yield of 7.2%. The building was purchased from a fund managed by AXA Real Estate.

Evans Randall, the privately held UK investment banking and private equity group, has acquired Sovereign House in London’s Docklands for £27 mln (EUR 32 mln) in a joint venture with private investor clients from Saudi Arabia. The deal reflects a net initial yield of 7.2%. The building was purchased from a fund managed by AXA Real Estate.

Sovereign House, located at 227 Marsh Wall, London E14, is an office building converted to a data centre by the tenant, a subsidiary of Telecity Group, which has a lease term remaining of 14.5 years.

Evans Randall chairman Michael Evans commented: ‘The acquisition is further evidence of Evans Randall’s commitment to London Docklands as a strategic investment location and gives us exposure to the rapidly expanding data centre sector.’ He added that the property offers asset management opportunities to create value for the investors.

Evans Randall’s other Docklands holdings include the Financial Services Authority headquarters at 25 North Colonnade, Canary Wharf and 5 Canada Square, Canary Wharf, Bank of America’s UK headquarters.

Evans Randall was represented by CBRE, while AXA Real Estate was advised by JLL.