A private overseas investor has acquired a retail and office asset in London's West End from Legal & General Investment Management Real Assets (LGIM Real Assets). The investment volume of £21.25 mln (€25 mln) reflects a net initial yield of 2.81%.
LGIM Real Assets sold the asset located at 9 Argyll Street on behalf of its Life Fund. The building comprises a retail unit, which is let to Jigsaw, arranged over the basement, ground and first floors with five floors of separately accessed office accommodation above.
The property is situated in the heart of the West End of London. It underwent an asset management programme this year under which a rent review of the retail unit was carried out, resulting in a 49% increase in rent and setting a new high for the street.
LGIM also restructured the lease for the 6th floor offices, and refurbished and relet the 4th and 5th floors within five months of their respective lease expiries, securing headline rents of £72.50 per sq ft, thereby doubling the office rents over the last two years.
CBRE acted for LGIM Real Assets on the sale, and Springer Nicolas acted for the buyer.
