LaSalle Investment Management has acquired the long leasehold interest of 3-8 Whitehall Place in London’s West End from Aberdeen Asset Management's Property Trust.
LaSalle Investment Management has acquired the long leasehold interest of 3-8 Whitehall Place in London’s West End from Aberdeen Asset Management's Property Trust.
The off-market transaction amounted to £80.6 mln (€110 mln) and was carried out on behalf of a retained client.
3-8 Whitehall Place has 114 years unexpired on the lease and is let to the Government’s Department of Environment and Climate Change (DECC) until 2029, with a break in 2021, for a rent of £625,000 per annum with an upward only rent review scheduled for December 2016.
Originally constructed in 1951, the Grade II listed office building was refurbished behind the retained Portland stone face in 2004 to add new sixth and seventh floors along with an atrium. It now offers 94,725 sq ft (8,800 m2) of flexible office accommodation. The building has BREEAM rating of ‘Excellent’.
'This is one of the best buildings within the parliamentary estate and is let to a UK Government tenant with the strongest of covenants, which reflects our strategy to invest in larger, high quality assets as we continue to grow this portfolio,' commented Nick Howitt, director at LaSalle Investment Management.
He added: 'Investor appetite and competition for the best Central London assets remains strong and this asset is rare for its immediate sub-market offering the opportunity for both rental and capital improvement.'
James McLean, fund manager on Aberdeen Property Trust, commented: 'The property was a good quality asset which surpassed our price target much earlier than we had envisaged due to the strong demand for office assets in the west end of London. The monies from the sale will be used to diversify the portfolio further and invest in long-term opportunities on behalf of our investors.'
LaSalle was advised by JLL and Aberdeen Asset Management was advised by Colliers International.