Grosvenor purchases City office at 5.9%

Grosvenor Fund Management has acquired Fleet Place House in the City of London financial district.

Grosvenor purchased the property on behalf of the Grosvenor London Office Fund (GLOF) from German family trust AM Alpha.

The investment volume of £68 mln (€78 mln) reflects a net initial yield of 5.9%. Savills advised AM Alpha, while Farmer Capital advised GFM.

The property on Holborn Viaduct comprises 8,100 m2 of office space and two retail units at street level and is currently let to a variety of occupiers, including Samsung and BT.

Scott Rowland, director, Grosvenor Fund Management said: 'Fleet Place House is in a great location which we expect to benefit from future growth fuelled by continued infrastructure investments and strong tenant demand, delivering attractive risk adjusted returns for our investors.'

The Grosvenor London Office Fund was launched in 1999 and owns four assets on behalf of four investors. The partnership strategy is to invest in large, high quality office buildings in central London to which GFM can add value through its active asset management expertise.

Grosvenor Fund Management , part of the London-based Grosvenor group, operates from 11 offices in the US, Europe and Asia. The fund manager had £4.1 bn of assets under management with 67 investor partners in 26 property funds, club deals and separate account mandates at end-2012.