Mountgrange Real Estate Opportunity Fund has sold the Warwick Building in west London to international fund manager Cordea Savills for £40 mln (€48 mln), or a net yield of 5.2%.

Mountgrange Real Estate Opportunity Fund has sold the Warwick Building in west London to international fund manager Cordea Savills for £40 mln (€48 mln), or a net yield of 5.2%.

The deal was made on behalf of The Bishopsgate Long Term Property Fund Unit Trust (BLTPFUT).

The Warwick Building forms part of the 320,000 sq ft (30,000 m2) Kensington Village office campus and was the former Whiteley depository building which was extensively refurbished in 2000.

The building is currently let to the Publicis Groupe, which is perusing a merger with Omnicom which would create the world’s largest communications company. The agreement is based on a full repairing and insuring lease with eight years unexpired. The passing rent is £2.2 mln per annum.

'The sale was an opportunity for investors in our first fund to take advantage of the resurgence in West London office rents and the work we have done towards obtaining consent for a residential extension,' said Rob West, partner at Mountgrange.

Patrick Lowther of Cordea Savills commented: 'The Warwick Building should also be a direct beneficiary of the Earls Court regeneration project that will bring new infrastructure, employment and housing to the area.'

GN2 advised Mountgrange on the sale.