Henderson sells London office at 3.77% yield

The Henderson UK Property Fund has sold a multi-let office building in London to a Zurich-based fund for £11.5 mln (€13 mln).

The price reflected a net initial yield of 3.77%.

The building at 13/14 Buckingham Gate totals 12,515 sq ft (1,160 m2) and is let to six tenants, with lease expiries between 2015 and 2021, at an average rent of £37.65 per sq ft.

Capita Symonds, which acted for Henderson, said the sale generated strong interest from overseas investors, attracted by the prime location with views of Buckingham Palace.

'Unprecedented overseas demand coupled with a supply shortage of trophy West End offices resulted in three rounds of bids to split a tight pack of exceptionally aggressive bidders. Future potential for residential use underpinned the value which assisted in negotiating a price which reflects one of the lowest yields ever achieved in Victoria for a rack rented office investment,' said Andrew Mercer, West End investment director at Capita Symonds.