GE Real Estate UK has sold an office property in the West End of London to ING Central London Fund for £51.4 mln (EUR 76 mln). The transaction reflected a net initial yield of 4.15% after expiry of rent-free periods. The property comprises 32,170 square feet (2,900 m2) of newly developed prime office accommodation.
GE Real Estate UK has sold an office property in the West End of London to ING Central London Fund for £51.4 mln (EUR 76 mln). The transaction reflected a net initial yield of 4.15% after expiry of rent-free periods. The property comprises 32,170 square feet (2,900 m2) of newly developed prime office accommodation.
The UK office of private equity group Fortress Investment Group is the main tenant. It occupies 1,765 m2 on the second, third, fourth and fifth floors on an 11 year lease at an average rent of £91.17 per sq ft (EUR 14.50 per m2). At the time, the letting last year was the largest of only three transactions to attract a rent of over £90 per sq ft, GE said.
GE acquired the property in 2004 through its acquisition of Benchmark Group, and subsequently redeveloped the site. The scheme was designed by architect Squire & Partners. Grafton Advisors acted as development advisors to GE Real Estate, while Franc Warwick acted as agent in the transaction. King Sturge advised ING.