IVG sells London building to Aviva Investors at 5.1% yield

Listed German real estate firm IVG Immobilien has sold the long leasehold interest in 111 Strand, London to UK-based asset manager Aviva Investors. The investment volume of £35 mln (just under EUR 40 mln) reflects a net initial yield of 5.1%.

The building was completed in 2003 and is located on the south side of Strand. It comprises 39,998 square feet (3,600 m2) of office and retail accommodation.

The building is multi-let to five tenants. The majority of the offices - 85% - are let to one of the leading global private equity and investment advisory firms, CVC Capital Partners, for a further nine years. The office passing rent reflects £54 per sq ft overall.

Aviva Investors Fund Manager Robert Walton said: 'The purchase of this prime asset continues the process of upgrading and de-risking the portfolio. The property has good performance prospects and is well positioned to benefit from the recovery of the Central London office market.'

Aviva Investors was represented by H2SO while IVG was represented by CBRE and Gresham Down Capital Partners.