Henderson office fund buys in the City of London

Henderson Global Investors' Central London Office fund has bought the freehold interests in the Houndsditch Estate from the Cutlers company.

The investment volume was not disclosed.

The Houndsditch Estate is made up of four adjoining office buildings, comprising Cutlers Exchange, Cutlers Court, 117-119 Houndsditch and 120 Houndsditch. Henderson acquired the long leasehold interests in November 2009 for £34 mln (€41 mln), representing a net initial yield of 10.8%.

The estate totals 125,000 sq ft (11,600 m2) across the four buildings and Henderson has recently completed the refurbishment of Cutlers Exchange. This has been let to tenants, including the Collinson Group and the Bluefin Group. The Estate sits within the tower cluster of the City of London, providing significant redevelopment potential in the longer term to create a new building of around 28,000 m2. Henderson also owns the adjoining 18,600 m2 133 Houndsditch, which has also undergone a significant refurbishment programme. The entire island site, which is now held freehold by the fund, totals 0.7 of a hectare.

DTZ advised Henderson Global Investors and Ingleby Trice advised The Cutlers.